although an order under Section 23A of the Indian Income tax Act had already been made on 12th December, 1941, for the assessment year 1939 40 in the case of the Atherton West Co. Ltd. ?
2,98,000 as dividend to the shareholders and to credit the account of each shareholder his respective share therein.
The High Court answered the question referred in the affirmative.
The Income tax Officer, by order dated November 18, 1940, ordered in exercise of the power under Section 23A of the Indian Income tax Act, as then in force, that an amount of Rs.
3,32,691 shall be deemed to be distributed amongst the shareholders as on the date of the general meeting of the companypany.
At the general meeting of the companypany held on April 22, 1939, the companypany failed to declare dividend to the extent of 60 of the assessable income of the companypany of its previous year as reduced by the amount of income tax and super tax payable by the companypany in respect thereof.
The Income tax Appellate Tribunal agreed with the order of the Income tax Officer.
23,328 which was credited in the accounts of the assessee during the accounting period of the assessment year 1943 44 companyld be subjected to tax under Section 16, Sub clause 2 , of the Income tax Act.
Pursuant to that resolution Rs.
On December 12, 1941, the Income tax Officer determined the shares of the different shareholders to whom the income was deemed to be distributed, but gave numbereffect to the order by including the proportionate shares in the amount of the deemed income in the individual assessments of the shareholders for the appropriate assessment year.
23,328 were credited to the account of the appellant who held 1,333 shares of the companypany.
In proceedings for assessment of the income of the appellant for the year 1943 44, the Income tax Officer brought the amount distributed by the companypany to tax, after rejecting the companytention of the appellant that the amount was number liable to be taxed in that year.
Shah, J. Atherton West and Company Ltd., Kanpur, was a companypany in which at the relevant time the public were number substantially interested within the meaning of Section 23A of the Indian Income tax Act, 1922.
Against that order, with certificate granted by the High Court, this appeal is preferred.
