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TMI Blog1981 (3) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... missioner of Income-tax and it reads thus : " Whether the Tribunal was right in holding that since the assessee had sufferred a loss in the assessment year 1968-69 and since there was no liability to basic tax, the question of levy of additional tax in respect of excess dividends did not arise under the provisions of the Finance Act, 1968, for the assessment year 1968-69 ? " It is not in dispute that the assessee is a company which falls within the description of a " domestic company " as specified in Para. F mentioned in the First Schedule to s. 2 of the Finance Act, 1968. It is provided therein that the rate of income-tax in the case of a company which falls under cl. (i) or (ii) or (iii) of 1(B) on so much of the total income as does n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under s. 2 of the Finance Act, 1968, can arise. Existence of income is a condition precedent to the chargeability to income-tax in respect of the previous year. The view taken by the Tribunal is, therefore, unexceptionable. Question No. 4, referred to this court, must, therefore, be answered in the affirmative and against the Revenue. In the result, the questions referred to us are answered as under : Questions Answers 1. Whether, on the facts and In the negative and in favour in the circumstances of the case, of the Revenue having regard the Tribunal was correct in law in to the decision in Addl. CIT finding that the payment of betterment v. Rustam Jehangir Vakil charges to the Ahmedabad Municipal Mills Ltd. [1976]103 ITR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ircumstances of the case, the Revenue in view of the the payment of Rs. 3,560 made to decision in Addl. CIT v. the Textile Commissioner under Rustam Jehangir Vakil Mills the visions of cl. 120(1)(b) of the Ltd. [ 1976]103 ITR 298 (Guj). Cotton Textile (Control) Order, 1948, was business expenditure allowable under s. 28 or under s. 37 of the Act ? Reference answered accordingly. No order regarding costs. Schedule producing the relevant provisions (as they stood at the material time) referred to in the judgment. Section 4(1) of the Income-tax Act (in so far as material): "4. (1) Where any Central Act enacts that income-tax shall be charged for any assessment year at any rate or rates, income-tax at that rate or those ..... X X X X Extracts X X X X X X X X Extracts X X X X
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