9911796707
TMI Blog1978 (1) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... Later on, the same was reopened and a revised assessment under section 143(3) read with section 146 was made on a total income of Rs. 27,391, inclusive of a sum of Rs. 20,500 representing certain loans, which the assessee had failed to prove. The Income-tax Officer, thereafter, passed an order under section 23A(1) of the Indian Income-tax Act, 1922. This however, was passed on the basis of figures of assessment as made under section 144. The assessee preferred an appeal to the Appellate Assistant Commissioner against the order of the Income-tax Officer. In appeal, the Appellate Assistant Commissioner took the total income as assessed under section 143(3), that is to say, Rs. 27,391. He was also of the opinion that for the purpose of determi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder of the Appellate Assistant Commissioner, was also reiterated. The Tribunal after considering the submissions of the parties came to the conclusion that besides the commercial profits, the only item which could be added back for the purpose of finding out commercial profits, was the sum of Rs. 411 on account of miscellaneous expenditure for preliminary expenses written off. This would make the total of Rs. 4,769. The tax payable on the income finally determined was Rs. 8,377. The Tribunal did not accept the revenue's contentions and, therefore, held that it could not be said that the assessee was, in any way, not justified in not declaring any dividend. On the aforesaid facts the following question has been referred to this court: " W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n their cases. He, however, stated that due to the lapse of time some of the parties were not available while some had expired. In these circumstances, the appellant's counsel agreed to the addition of the amounts standing in various names on the basis of peak credits. For this purpose the appellant's counsel worked out a consolidated account from which I find that the peak credits in the two years are as under : Assessment year Peak Rs. 1961-62 11,725 1962-63 32,100 On this basis the amounts that fell to be assessed are Rs. 11,725 for assessment year 1961-62 and Rs. 20,375 for assessment year 1962-63. The appellant's counsel has agreed in writing to the additions of these amounts in the respective assessments. On this basis, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the previous year, as computed for income-tax purposes and reduced by the amount of income-tax and super-tax payable by the company, shall be deemed to have been distributed as dividend amongst the shareholders. Commercial or accounting profits which have to be taken into consideration to see whether a larger amount than that declared by the company could be distributed in view of the smallness of the profits made, are the real commercial or accounting profits. In case, however, if an item of receipt is deliberately omitted from the accounts it cannot be said that the commercial principles prevent that amount being added to the profits in order to arrive at the real commercial or accounting profits, as was the case before the Supreme Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X
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