supcl/69 5 appeal from the judgment and order dated january 6 1965 of the calcutta high companyrt in income tax reference number 145 of 1961.
the assessee first credited this sum to the profit and loss appropriation account and thereafter transferred the same to a reserve fund in the accounting year ending september 30 1955.
it is admitted that the dividends which had been declared between the years 1936 and 1945 and were received by the assessee during the accounting period amounted to rs.
the assessee brought a second appeal to the appellate tribunal but the appeal was dismissed.
a letter addressed by beharilal nathani to the assessee bearing the date september 30 1954 goes to show that the shares had been sold with arrear dividends.
it was merely a realisation of capital.
9 8 0 per share and the other at rs.
the value of the shares which represented the stock in trade of the assessee remained the same both in the opening and the closing stocks.
no adjustment was made in the share purchase account on account of the receipt of dividend.
sen s. a. l. narayana rao r.n.
112575/ .
on september 30 1954 the assessee purchased 11900 shares of kedarnath jute manufacturing company limited in two.
civil appellate jurisdictioncivil appeal number 2115 of 1968.
the business of the assessee was to deal with shares and securities.
mitra and p.k.
when the assessee purchased the said shares a large amount of dividends was in arrear as the previous owners had number claimed the dividends declared between 1936 and 1945 although a large part of the dividends on the said shares in respect of the years 1945 to 1954 had been companylected by the previous owners of the said shares.
the income tax officer rejected the companytention of the assessee and treated the amount of arrear dividend as the business income of the assessee liable to tax.
mukherjee for the respondent.
9 4 0 per share from one beharilal nathani share broker for a total companysideration of rs.
he however held that the amount companyld number be regarded as dividend as the assessee was number the registered shareholder in the years for which the arrear dividends were declared.
the judgment of the companyrt was delivered by ramaswami j. the respondent is a private limited company hereinafter referred to as the assessee .
lots one at the rate of rs.
43925/ .
before the income tax officer it was companytended on behalf of the assessee that as the arrear dividends pertained to the years 1936 to 1945 the arrear dividend received by the assessee was number in the nature of income liable to income tax as.
the appeal relates to the assessment year 1956 57 for which the previous year is the year ending september 30 1955.
sharma for the appellant.
sachthey and b.d.
