Income-tax Act,1961
Act No : 43
Section :
Special provisions for certain companies.
1[105 Special provisions for certain companies.-Omitted by the Finance ---------------------------------------------------------------------- --> --> has made the prescribed arrangements for the declaration and payment of dividends within India. Explanation.-For the purposes of clause (a) of this sub-section the business of a company shall be deemed to consist mainly in the construction of ships or in the manufacture or processing of goods or in mining or in the generation or distribution of electricity or any other form of power, if the income attributable to any of the aforesaid activities included in its gross total income for the relevant previous year is not less than fifty-one per cent of such total income." 1 Prior to the omission, section 105, as amended by the Finance Act, 1973, w.e.f. 1-4-1974, read as under: "105. Special provisions for certain companies.-(1) No order under section 104 shall be made,- (i) in the case of an investment company which has distributed, within the period of twelve months referred to in sub-section (1) of section 104, not less than eighty per cent of its distributable income; or (ii) in the case of any other company whose distribution, within the period of twelve months referred to in sub-section (1) of section 104, falls short of the statutory percentage by not more than ten per cent of its distributable income; or (iii) in any case where according to the return made by a company under section 139 it has distributed, within the period of twelve months referred to in subsection (1) of section 104, not less than the statutory percentage of its distributable income, but in the assessment made by the Income-tax Officer under section 143 or section 144 a higher total income is arrived at and the difference in the total income does not arise out of the application of the proviso to sub-section (1) of section 145 or sub-section (2) of section 145 or section 144 or the omission by, the company to disclose its income fully and truly; or (iv) in the case of a company where a reassessment is made under the provisions of clause (b) of section 147 and the sum distributed as dividends falls short of the statutory percentage of the distributable income determined on the basis of the reassessment, unless the company, on receipt of a notice from the Income-tax Officer that he proposes to make such an order, fails to make within three months of the receipt of such notice, a further distribution of its profits and gains so that the total distribution made is not less than the statutory percentage of the distributable income. Explanation.-For the purposes of clause (iv) of this sub-section, "the sum distributed as dividends" means,- (a) where in relation to the assessment made under section 143 or section 144, any further distribution of dividends was made by the company in pursuance of a notice under this sub- section,: the aggregate of the following sums, namely- (i) the sum distributed as dividends within the period of twelve months referred to in sub-section (1) of section 104, and (ii)the sum distributed as dividends within the period of three months from the receipt of the said notice; (b) where an order under section 107A has been made by the Board in relation to the assessment made under section 143 or section 144, the sum distributed as dividends within the period determined by the Board under the provisions of sub-section (4) of section 107A; -> -> ----------------------------------------------------------------------- 1.455 Act, 1987, w.e.f 1-4-1988.]
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