COMMISSIONER OF INCOME TAX, WEST BENGAL vs M/S. ABDUL RAHIM OSMAN & CO. (INDIA) PRIVATELIMITED

The Supreme Court held that under Section 23A(1) of the Indian Income Tax Act, 1922, a private company cannot be subjected to Super Tax on dividends declared after the accounting year but before the Income Tax Officer's order. The Court emphasized that the purpose of Section 23A(1) is to prevent companies from avoiding Super Tax by not distributing sufficient dividends. The High Court's affirmation of the Tribunal's decision was upheld, confirming that the Income Tax Officer must consider dividends declared prior to the order when assessing undistributed income.