PILLANI INVESTMENT CORPORATION LTD. vs I.T.O.'A'WARD, CALCUTTA & ANR.

The Supreme Court reaffirmed the decision in M. M. Parikh v. Navanagar Transport & Industries, holding that Section 34(3) of the Income-tax Act, 1961 does not apply to orders under Section 23A. The Court ruled that the limitation period under Section 106 of the Act is not relevant for such orders, as they do not assess income but levy super-tax on undistributed profits. The plea for review was dismissed as no vital point was overlooked and the judgment was not erroneous as per the principles established in Keshav Mills v. C.I.T. Bombay.