RAJPUTANA AGENCIES LTD. vs COMMISSIONER OF I. T., BOMBAY

The Supreme Court held that the expression 'rate applicable to the total income of the company' in the context of additional income-tax under the Indian Finance Act, 1951, refers to the rate actually applied, not the statutory rate. The assessee, Rajputana Agencies Ltd., was assessed at a rate of forty-four pies per rupee on the excess dividend of Rs. 15,159, which was correctly determined based on the actual assessment rate. The Court upheld the additional income-tax liability as calculated by the Income-tax Officer, confirming the interpretation of the relevant provisions of the Finance Act.