JUDGMENT

CHANDRACHUD, J.:—These appeals by certificate granted by the High Court of Madras under Section 66A(2) of the Income-tax Act, 1922 arise out of a common judgment dated January 23,1969 delivered by the High Court in Tax Cases Nos. 116 of 1965 and 190 of 1967. Tax Case No. l16 of 1965 arose out of the reference made by the Income-tax Appellate Tribunal under Section 66 (1) of the Act while Tax Case No, 190 of 1967 arose out of a reference made by the Tribunal in pursuance of an order made by the High Court under Section 66(2) of the Act. The question which arises for consideration in these appeals is whether under Section 23A of the Act, the assessee-company is liable to pay additional super-tax in respect of any portion of its profits.

2. Section 23A of the Act of 1922, in so far as material read thus at the relevant time:

"23A. (1) Where the Income-tax Officer is satisfied that in respect of any previous year the profits and gains distributed as dividends by any company within the twelve months immediately following the expiry of that previous year are less than the statutory percentage of the total income of the company of that previous year as reduced by

( a) the amount of