PIONEER MOTORS LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is a reference by the Tribunal, Madras Bench ' B', under s. 66(1) of the Indian IT Act, 1922. The questions referred are :

(2.) THE facts necessary to appreciate the questions referred are few and can be briefly stated. The assessee, the Pioneer Motors Ltd., is a private limited company with two shareholders which was incorporated in November, 1946 (1122 M. E.), under the Travancore Companies Act (IX of 1124). The accounts of the year 1122 were laid before the company in general meeting on 22nd July, 1949, of 1123 on 22nd Sept., 1950, of 1124 on 2nd Jan., 1951, and of 1125 on 31st Dec., 1951. There was no declaration of any dividend at the meetings held on 22nd July, 1949, 22nd Sept., 1950, or on 31st Dec., 1951.

(3.) IN the report to the shareholders dt. 28th Dec., 1950, (Annexure B) the directors said :