JUDGMENT :

A.R. Bakshi, J.

1. The question for consideration in this Reference under section 66 (I) of the Indian Income-tax Act, 1922, is whether the sum of Rs. 75,000 or any part thereof could be treated as dividend under section 2(6-A)(c) of that Act. This amount represents the seventh distribution made by the Liquidator of the assessee Company on 24th July, 1957 for the assessment year 1958-59 at the rate of Rs. 30 per share. The assessee company had gone into voluntary liquidation on 23rd August, 1952. On the date of going into liquidation, the company had accumulated profits amounting to Rs. 5,34,041. Two distributions were made by the Liquidator in the accounting year ending 30th September, 1952 relevant to the assessment year 1953-54 amounting to Rs. 17,25,000. Three more distributions were made in the accounting year ending 30th September, 1953 relevant to the assessment year 1954-55 amounting to Rs. 3 lakhs. A sixth distribution was made in the accounting year ending 30th September, 1954 relevant to the assessment year 1955-56 amounting to Rs. 2 lakhs. The seventh distribution with which we are now concerned, was made during the accounting year ending 30th September, 1957 r