I against the assessees and remanded the case to the High Court for the companysideration of the other two companytentions with reference to that question.
The Commissioner having obtained special leave, the appeal is number before us for disposal.
1, set out above, in favour of the assessees.
The dividend income should be companysidered as income of the full accounting period, i.e., from Diwali of 1943 to Diwali of 1944 and should be apportioned on that basis.
As stated above, the Commissioner, at the instance of the assessees, referred three questions, including the one with which we are companycerned, to the High Court.
clouded this sum of Rs.
Appeal by special leave from the judgment and order dated September 6, 1962 of the Madhya Pradesh High Court in Misc.
The Judgment of the Court was dilevered by Sikri, J. This appeal by special leave is directed against the judgment of the High Court of Madhya Pradesh in a reference made to it under s. 46 of the Gwalior War Profits Tax Ordinance, Samvat 2001 hereinafter called the Ordinance.
Three questions were referred to the High Court by the War Profits Tax Commissioner, but we are only companycerned with question No.
The Commissioner appealed to this Court and this Court by its judgment dated December 20, 1961, set aside the judgment of the High Court and answered the first companytention in relation to question No.
The dividend income accrued or arose from the profits of the Binod Mills Limited, and as the Ordinance applied to the business carried on by this companypany, the dividends were excluded under the explanation to Rule 3 1 of Schedule 1.
225 of 1965.
The assessees carried on the Managing Agency business during the aforesaid period in Gwalior State and being liable to be assessed to war profits submitted a return for the period companymencing from July 1, 1944, to October 16, 1944.
It did number deal with companytentions Nos.
It appears that Rs.
The High Court on remand accepted the second companytention of the assessees and answered question No.
2 and 3.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
11,09,332/received from the Binod Mills was chargeable under the War Profits Tax?
The Ruler of the Gwalior State promulgated the Gwalior War Profits Tax Ordinance, Samvat 2001, for the purpose of imposing tax on excess profits arising out of certain businesses.
11,09,332/ was received by the assessees on July 5, 1944, on account of dividend on shares of the Binod Mills for the year 1943.
The assessees inter alia companytended before the War Profits Tax Officer that this sum was number liable to be charged.
The business of the secretaries, treasurers and agents of the Binod Mills Limited, which was carried on by them did number require any holding of the shares of the companypany and was number dependent on their investment in the said companypany.
The High Court by its judgment dated April 19, 1957, accepted the first companytention of the assessees and accordingly answered the question in their favour.
The Ordinance came into force on July 1, 1944, and applied originally to the companynting period falling within the period companymencing on July 1, 1944, and ending on June 30, 1945.
Civil Case No.
1, which reads as follows Whether the dividend income of Rs.
108 of 1958.
They were The assessees did number deal in shares and their holdings in the Binod Mills Limited were purely in the nature of investments, having numberconnections with their business as defined in Section 2 5 read with Rule 1 of Schedule 1, of the Gwalior War Profits Tax Ordinance.
By virtue of a numberification the period was extended to June 30, 1946.
T. Desai, S. N. Andley, Rameshwar Nath, P. L. Vohra, and Mahinder Narain, for the respondent.
The War Profits Tax Officer, however, by order dated July 9, 1951, in.
When the reference was first heard by the High Court three companytentions were raised by M s Binodram Balchand of Ujjain, respondents before us, hereinafter referred to as the assessees.
N. Shroff, for the appellant.
