1 51 S.C. 14 Out of the income so derived, the guaranteed interest to the shareholders who make monthly deposits, receive guaranteed interest but the shareholders who do number companytribute monthly deposits may or may number receive any dividend.
In a detailed and closely reasoned order, dated February 29, 1952, which is part of the statement of the case, passed in respect of the assessment year 1947 48, the Income Tax Officer held that New York Life Assurance Company v. Styles 1 did number apply to the facts of this case.
It carries on banking business restricted to its shareholders, i.e., the shareholders are entitled to participate in the various recurring deposit schemes of the assessee or to obtain loans on security.
78 of 1956.
Appeals from the judgment and order dated October 20, 1960, of the Madras High Court in Case Referred No.
The Income Tax Officer assessed the entire profits for eight years from 1946 47 to 1953 54.
1882, limited by shares.
Civil Appellate Jurisdiction Civil Appeals Nos.
He distinguished Styles 1 case thus Whereas the New York Life Assurance Company paid to its members what it had saved, the assessee fund pays to its members what it has earned.
A share holder in the New York Life Assurance Company did number get back anything more than what he companytributed, a share holder of the Kumbakonam Mutual Benefit Fund does 1 2 T.C. 460 on the other hand get more than what he company tributes.
The statement of the case describes the working of the assessee thus Recurring deposits are obtained from members for fixed amounts to be companytributed monthly by them for a fixed number of months as stipulated at the end of which a fixed amount is returned to them according to published tables.
1 each.
Kesava Iyengar, M. S. K. Iyengar and Krishna Pillai, for the respondent.
N. Rajagopal Sastri and R. N. Sachthey, for the appellant.
These recurring deposits companystitute the main source of funds of the assessee for advancing loans.
as required by the Memorandum of Articles aforesaid.
637644 of 1963.
33,00,000 divided into shares of Re.
Since 1938.
Out of the interest realised by the assessee on the loans which companystitute its main income, interest on the recurring deposits aforesaid are paid as also all the other outgoings and expenses of management and the balance is divided among the members pro rata according to their shareholdings after making provision for reserves, etc.,
The Judgment of the Court was delivered by SIKRI J.The respondent, the Kumbakonam Mutual Benefit Fund Ltd., hereinafter referred to as the assessee, is a companypany incorporated under the Indian Companies Act.
May 7, 1964.
the numberinal capital of the assessee is Rs.
