Judgement

SHAH, J. : The appellant-a company registered under the Indian Companies Act, 1913- was assessed in the assessment years 1948-49 to 1953-54 in respect of the profits earned in its business, and was allowed rebate under the appropriate provisions contained in the Schedules to the relevant Finance Acts on the undistributed profits of the previous years. On December 31, 1956 at an annual general meeting of the shareholders the Company declared an aggregate sum of Rs. 2,15,232 as dividend for the year ending December 31, 1956. Thereafter a special resolution was passed for voluntary winding up of the company with effect from October 1, 1957, and for appointing a liquidator to wind up the affairs of the Company. On October 20 and 21 1957 the liquidator distributed to the shareholders Rs. 5,17,171-20 and thereafter on February 21 and 22, 1958; March 31, 1958 and July 27, 1959 the liquidator distributed diverse other amounts to the shares-holders. In respect of each such distribution the liquidator issued an "income-tax refund certificate certifying certifying that the amount was distributed out of reserves formed out of accumulated profits of earlier years.

2. The Income-tax