( 1 ) THIS is a reference under section 66 (1), Income-tax Act and arises out of orders under section 23-A (1) of the Act for the assessment years 1941-42 and 1942-43.

( 2 ) THE assessee is Kilburn Properties Limited Calcutta; the only source of income of the company is house property.

( 3 ) THE assessable income of the company for 1941-42 was Rs. 34,772 and the income-tax payable was Rs. 10,141-13/- only leaving a balance of Rs. 24,630-3/- available for distribution as dividends. The general meeting of the company was held on 6-6-1941. No dividend was declared.

( 4 ) IN the profit and loss account the company showed Rs. 31,331/- as depreciation allowance on the original cost of Rs. 1,19,002/- only and thus the profits were shown as Rs. 55-2-6 only.

( 5 ) THE Income-tax Officer thought that the company should have declared 60 per cent of the assessable income less tax as dividend and made an order in terms of section 23-A (1) of the Act.

( 6 ) DURING the assessment year 1942-43 the assessable income was Rs. 35,847/- and the tax payable was Rs. 11,762-6-0 and the balance of Rs. 24,084-10/- was available for distribution as dividend. The general meeting was held o