ASOKA TEXTILES LIMITED Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) This petition has come before us under an order of reference which runs as follows:-

(2.) To appreciate the questions involved the following further facts may also be stated. The petitioner company filed its return in connection with its assessment to income tax by the Income Tax Officer, Alwaye District, for the year 1952-53 declaring an income of Rs. 3,21,284. The assessment order however computed its total income at Rs. 10,61, 511 and arrived at the net income of Rs. 3,26,101 after deduction of depreciation ordinary and extra and allowed under law. The net assessable income was then ascertained as Rs. 1,47,083 after deducting an allowance under S.15(c) of six per cent on the computed capital of Rs. 29,83,637. The total tax payable by way of income tax, surcharge and corporation tax was then fixed at Rs. 63,889-3-0. An amount of Rs. 5,000 already paid as per S.23(b) assessment was given credit to and the balance of Rs. 58,839-3-0 was directed to be paid on or before 26th February 1953. This assessment order is dated 22nd February 1953 and is filed in the case as Ext. A.

(3.) The first rectification under S.35 of the Income Tax Act was made by the succeeding Income Tax Officer, the 1st respondent herein by Ext. B order dated 25th January 1954 on the basis that additional income tax on excess dividend which was contemplated in the Schedule to the Indian Finance Act 1952 had been omitted to be levied. Such excess dividend was found on calculation to come to Rs. 4,68,001, being the major portion of the total of Rs. 4,72,415 declared as dividend. Additional income tax at 1 anna in the rupee amounting to Rs. 29,250-1-0 was thereupon levied and directed to be paid on or before 20th February 1954.