JUDGMENT

R. JAYASIMHA BABU, J-As to whether on account of the failure of the amalgamating company to distribute the statutorily prescribed portion of the undistributed profits an order under section 104 of the Income Tax Act, 1961, cannot be made against the amalgamated company is the question that has been referred to us at the instance of the Revenue. It is not in dispute that the charge for the additional tax is created by section 104 of the Income Tax Act, 1961, as -there is no other provision in the Act, which creates a charge for tax on such undistributed profits. It is also not in dispute that the order was made within the period of limitation prescribed under the section.The amalgamated company is T.V. Sundaram Lyengar & Sons (Private) Limited, Madras, and the amalgamating company was Sundaram Motor (Private) Limited. An order of amalgamation was passed by this Court in C.P. No.52 of 1970, the petition having been filed by the two companies on which this Court sanctioned a scheme of...