The Commissioner of Income tax, Bombay, then moved the Tribunal to refer the following question of law to the High Court of Bombay Whether the dividend income of Rs.
Accordingly, the Tribunal allowed the appeal and directed the Income tax Officer companycerned to delete the deemed dividend income from the income of the Hindu undivided family.
The shares were held in the names of different members of the family as given below.
One Nanalal Haridas was the karta of a Hindu undivided family which admittedly was the beneficiary of 1842 shares in a companypany called the Cotton Export and Import Limited hereinafter referred to as the Company .
Appeals from the judgment and order dated September 25, 1957, of the Bombay High Court of Income tax References Nos.
The matter them went in appeal to the Income tax Appellate Tribunal.
29 of 1957, and the other two References were disposed of in accordance with.
This amount the Income tax Officer added to the income of the joint family.
of shares Name or names in which they stand 877 Tribhuvandas Haridas 815 Nanalal Haridas 150 Nanalal Haridas and Tribhuvandas Haridas The Company was one in which the public were number substantially interested.
30, 29 37/57, respectively.
The facts are similar in the three cases and the question of law which the High Court had to answer was the same in each of the cases.
The assessee family claimed that the dividend deemed to have been distributed under s. 23A should be assessed in the hands of the shareholders, that is, the persons in whose names the, shares stood registered in the books of the Company, and number in the hands of the Hindu undivided family though admittedly it was the beneficiary of the shares.
54,30,7/ .
CIVIL APPELLATE JURISDICTION Civil Appeals Nos.
125, 231 and 447 of 1960.
The Income tax Officer and the Appellate Assistant,Commissioner rejected ,this companytention.
37 of 1957.
For the assessment year 1949 50 the Income tax Officer companycerned applied the provisions of s. 23A of the Indian Income tax Act, 1922 as it stood previous to the amendment of 1955 and ordered that the undistributed portion of the assessable income of the Company of the relevant previous year, as companyputed for income tax purposes and reduced by the amount of income tax and supper tax payable by it in respect thereof, shall be deemed to have been distributed as dividend among the shareholders as at the date of the relevant General Meeting of the Company.
Theproportionateamount of dividend of the 1842 shares, after being grossed up, came to Rs.
They arise out of three Income tax References made to the High Court of Bombay, namely, Income tax Reference No.
V. Viswanatha Sastri and J. B. Dadachanji, for the respondents.
The Judgment of the Court was delivered by K. DAS, J. These three appeals, with special leave of this Court have been heard together.
N. Rajagopal Sastri and D. Gupta, for the appellant.
July, 18.
30 of 1957 and Incometax Reference No.
29 of 1957, Income tax Reference No.
Income tax Reference No.
