2,24,000 distributed by the Company, represented capital gains arising to the Company on or after April 1, 1948 and number being dividend within the meaning of s. 2 6A of the Income Tax Act, 1922, the share distributed to the shareholders out of that amount was exempt from income tax.
The order of the Appellate Assistant Commissioner was reversed in appeal by the Tribunal.
Dividend distributed by a Company being a share of its profits declared as distributable among the shareholders, is number impressed with the character of the profits from which it reaches the hands of the shareholder.
with certificates granted by the High Court.
Appeal from the judgment and order dated December 2, 1964 of the Calcutta High Court in Income tax Reference Nos.
28,125 was rightly included as dividend in the total income of the assessee for the assessment year 1949 50?
736 to 739, 91 3 and 1621 of 1968.
The Appellate Assistant Commissioner held that Rs.
was answered in the negative.
Jagdish Swarup, Solicitor General, T.A. Ramachandran, N. Sachthey and B.D. Sharma, for the appellant in all the appeals .
CIVIL APPELLATE JURISDICTION Civil Appeal Nos.
131 of 1961 etc.
The Commissioner has appealed to this Court.
The Income tax Officer rejected the companytention and brought the dividend to tax in the hands of the respondents.
Barman Ranjit Ghose and Sukumar Ghose, for the respondents in all the appeals .
The Judgment of the Court was delivered by Shah, Ag.
C.J. In a proceeding for assessment to Income tax for the year 1949 50 the respondents in these appeals claimed that the dividend distributed by the Ukhra Estate Zamindaries Ltd. was exempt from tax, because the fund out of which the dividend was distributed did number form part of the accumulated profits of the Company.
1,12,500 out of a total amount of Rs.
