In the assessment of the Company for the assessment years 1946 47 and 1947 48 the Income tax Officer, Bombay, made an order on March 26, 1953, under s. 23A of the Income tax Act, 1922 as it then stood that certain undistributed parts of the assessable income of the Company shall be deemed to have been distributed as dividends amongst the shareholders as at the dates, viz.,
The Income tax Officer then issued on March 28, 1953, a numberice under s. 34 1 b of the Income tax Act addressed to James Anderson, Administrator to the Estate of late Mr. Henry Gannon reciting that he had reason to believe that Andersons income assessable to income tax for the year ending 31st of March 1949 had escaped assessment and that he proposed to re assess the escaped income and for that purpose called upon Anderson to make a return of his total income and the total world income assessable for the year ending March 31, 1949.
Andersons appeals against the order of the Income tax Officer to the Appellate Assistant Commissioner and to the Income tax Appellate Tribunal, Bombay, were unsuccessful.
With special leave, the Commissioner of Income tax, Bombay, has appealed to this Court.
61,051 and Rs.
3,73,099.
Appeal by special leave from the judgment and order dated September 21, 1961 of the Bombay High Court in Income Tax Reference No.
The net dividends so deemed to be distributed in respect of the shares were Rs.
The Income tax Officer in his order of assessment included dividends deemed to be distributed and after processing the amount under s. 18 5 included it in the total income of Anderson and levied tax thereon at the appropriate rate.
128 of 1963.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
140 per share.
Morarka, for some reason which is number clear from the record, failed to present the transfer deeds and the share certificates for registration at the office of the Company and the name of Gannon remained at all material times on the register of shareholders in respect of those 2224 shares.
The National Bank of India Ltd. obtained probate of Gannons will in the United Kingdom and appointed the respondent James Anderson its attorney to administer the estate in British India.
D. Karkhanis, R.N. Sachthey and B.R.G.K. Achar, for the appellant.
32 of 1959.
Anderson applied for and obtained in India on August 14, 1946, Letters of Administration durante absentia to the estate of Gannon in British India.
In companypli ance with the requisition Anderson submitted a return, but did number include therein the dividend deemed to have been distributed under the order dated March 26, 1953.
J. Kolah, J.B. Dadachanji, O.C. Mathur and Ravinder Narain, for the respondent.
May 26, 1947, and December 22, 1947, of the General Meetings of the Company.
By agreement dated August 14, 1946, between the executor to the estate, the Company and one Morarka, the executor agreed to sell the remaining 2224 shares of the Company to Morarka and pursuant thereto the relevant share certificates with transfer deeds were handed over to Morarka on October 12, 1946, against payment of the price at the rate of Rs.
December 2, 1963.
450 out of the shares were specifically bequeathed by Gannon to certain legatees, and in the companyrse of administration, share certificates with transfer forms duly executed were delivered to the legatees in respect of those shares and numberquestion arises in this appeal in regard to those shares.
The Judgment of the Court was delivered by SHAH, J. Henry Gannon who was a registered holder of 2674 shares of Gannon Dunkerley Company a private Limited Company with its registered office in Bombay died on May 13, 1945, having made and published a will disposing of his extensive estate in the United Kingdom and in British India.
