Judgement

SHAH, J.:- In Sundaram and Company (Private) Ltd.-hereinafter called "the Company"-the public are not substantially interested within the meaning of Section 23A of the Indian Income-tax Act, 1922. In dealing with the assessment of income of the Company for the assessment years 1946-47 to 1051-52, the Income-tax Officer, Central Circle, Madras, passed orders under S. 23 A of the Income-tax Act, 1922, and directed that the total income of the Company as determined in the years of assessment less tax payable be deemed to have been distributed amongst the shareholders of the Company as on the relevant dates of the General Body Meetings. The following table sets out the relevant details:

Assessment year Amount of dividend deemed to have been declared Date of order passed under S. 23A deeming dividend to have been declared.

1946-47 46,563 March 18, 1952

1947-48 43,959 March 18, 1952

1948-49 47,829 March 18, 1952

1949-50 97,875 March 18, 1952

1950-51 92,591 March 18, 1952

1951-52 25,899 March 30, 1955

3,54,716

On July 7, 1955 the Company in a general meeting resolved that the amount of Rupees 8,54,716 which was under the orders of the Income-tax Officer deemed to have been distrib