Assessee was a financial institution established under SIDBI Act . It had transferred certain amount in accordance with provision of section 29(2) of SIDBI Act out of its profit and made a deposit to meet its liability towards payment of dividend to its shareholders . Revenue was of view that any amount declared or distributed or paid by assessee by way of dividend was liable for additional tax by way of dividend distribution tax under provisions of section 115-O of the Act .  Assessee paid such additional tax, however, under protest . The assessee  filed  writ  petition and sought for a refund of said additional tax paid contending that tax on payment of dividend as per section 115-O was exempted by virtue of section 50 of SIDBI Act and, therefore, assessee was entitled to refund of such tax paid under protest . Allowing the petition the Court held that  section 50 of SIDBI Act exempts SIDBI from paying dividend distribution tax on dividends under section 115-O of Income-tax Act, 1961, and thus, assessee was not liable to pay same on dividends paid by it to shareholders. Accordingly  the  additional tax already paid by assessee under protest was directed  to be refunded .  ( AY. 1997 -98 to 2000-01 )