9911796707
TMI Blog1981 (9) TMI 155X X X X Extracts X X X X X X X X Extracts X X X X ..... cture and sale certain chemicals. Its accounting year is the calendar year. 3. Pending setting up of the industrial unit, it made trading profits in the year 1973. It commenced production in 1974 and made further profits. It did not declare dividends for the years ended 31st Dec., 1973 and 31st Dec., 1974. The Directors' Report showed that they had not recommended any dividend for 1974 so as t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deration. 5. We have considered the relevant facts and circumstances and also the rival submissions. 6. The substance of the plea of the assessee is once again that having regard to the smallness of the profits in context to its expansion programme and the future need for financial resources, it was not reasonable for the assessee to declare any dividend. The relevant report of the Director ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce on hand at the end of the year was only a little less than Rs. 5,00,000. However, there is a force in the submission of Shri Patil that having regard to the nature and extent of the business of the assessee, the cash balance is not unusually large. The other point made on behalf of the department is that the profits and reserves as on 31st Dec., 1975 were about Rs. 7,00,000. Though this is tru ..... X X X X Extracts X X X X X X X X Extracts X X X X
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