Supreme Court of India · 1962-11-14
THE AHMEDABAD MFG. & CALICOPRINTING CO., LTD. vs S. C. MEHTA, INCOME-TAX OFFICERAND ANOTHER
- Citation / case number
- SC 1962/9
- Court
- Supreme Court of India
- Petitioner
- THE AHMEDABAD MFG. & CALICOPRINTING CO., LTD.
- Respondent
- S. C. MEHTA, INCOME-TAX OFFICERAND ANOTHER
- Author
- DAS, S.K.,KAPURL.,SARKAR, A.K.,HIDAYATULLAH, M.,DAYAL, RAGHUBAR
- Bench
- DAS, S.K.,KAPUR, J.L.,SARKAR, A.K.,HIDAYATULLAH, M.,DAYAL, RAGHUBAR
Judgment text excerpt
The Supreme Court held that Sub-section (10) of Section 35 of the Indian Income-tax Act, 1922, has retrospective operation and applies to cases where a rebate was allowed on undistributed profits subsequently used for declaring dividends. The court ruled that the Income-tax Officer was justified in recomputing the tax payable by the company by withdrawing the rebate. The dissenting opinion argued that the sub-section was intended to be prospective and did not apply to events occurring before its enactment.