COMMISSIONER OF INCOME TAX Vs. UNICHEM LABORATORIES LIMITED

JUDGEMENT

(1.) THE only question of law referred to this Court at the instance of the Revenue reads thus :

(2.) DR . Balasubramanian, learned counsel for the Revenue, stated that the question was squarely covered by the Supreme Court decision in the case of Vazir Sultan Tobacco Co. Ltd. vs. CIT (1981) 25 CTR (SC) 186 : (1981) 132 ITR 559 (SC) in favour of the Revenue.

(3.) IN order to appreciate Shri Kolah's submissions, we glanced through the balance sheet of the company for the relevant financial year, i.e., 1969 70. The recommendation regarding the distribution of dividend is at page 7 in the following manner: 3.1 Your directors have pleasure in recommending a dividend for the year ended on 30th September, 1970, at the rate of Rs. 10 (Rupees ten only) per share of Rs. 100 each fully paid up subject to deduction of tax at appropriate rates. After your sanction, the dividend amounting to Rs.