Judgment

SHAH, J. : By a resolution dated August 23, 1952 it was resolved to wind up the respondent company and to appoint a liquidator for that purpose. The paid-up capital of the assessee was Rs. 25 lakhs, and on the date of commencement of winding up it had an accumulated profit of Rs. .5,34,041. From time to time the liquidator distributed the assets in his hands among the shareholders. The following table sets out the distributions made by the liquidator:

Assesment Year Distribution per share Date of distribution Amount distributed

1953-54 Rs. 600 9-9-1952 15,00,000

" Rs. 90 25-9-1952 2,25,000

1954-55 Rs. 60 10-11-1952 1,50,000

" Rs. 30 6-5-1953 75,000

" Rs. 30 23-2-1953 75,000

1955-56 Rs. 80 10-11-1953 2,00,000

Out of the distribution made on September 9, 1952, the Income-tax Officer brought, in the assessment year 1953-54, to tax Rupees 52,400 as "dividend" within the meaning of S. 2 (6A) (c) of the Income-tax Act, 1922, as it then stood. On July 24, 1957, the liquidator distributed Rs. 30 per share among the shareholders. The income-tax Officer in the course of assessment for the year 1958-59 sought to bring the entire amount of Rs. 75,000 distributed to tax as dividend" wi