The financial institution established under SIDBI Act. Finance Act, 1997 provided for the tax payment on distributed profits. The assessee had transferred a sum of Rs 54 Crores to IDBI in accordance with section 29 (2) of the SIDBI Act out of profits year ending 31-3 1997. The assessee also deposited tax as per section 115-O of the Act under protest and sought clarification about liability to pay additional tax. As the clarification was rejected the assessee filed writ petition before the High Court.   Allowing the petition the Court held that the amount distributed or paid by way of dividend falls in category of profits under section 50 of the SIDBI Act, on any income, profits gains derived, or any amount received and thus the assessee would not be liable to pay income-tax or any other tax. The assessee was not liable to pay additional income-tax under section 1150-O of the Act. The amount collected for directed to be refunded. (WP No. 1994 of 2003 dt. 2-12-2021)