Home Case Index All Cases Income Tax Income Tax + SC Income Tax - 1964 (9) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
1964 (9) TMI 10 - SC - Income TaxWhether the initiation of action under section 34 for the purpose of bringing to tax the net dividend income of ₹ 579 (suitably grossed) was valid ? Whether the said ' P. portion of the dividend income ' forms part of the assessee's total income as that term is defined in section 2(15) of the Indian Income-tax Act, 1922 ? Whether, having regard to the provisions of the Indo-Pakistan Agreement, the assessee is entitled to any ' relief ' on the said ' P. portion of the dividend income' ? Whether the other moiety of the dividend of ₹ 1,71,992 declared by the company on October 14, 1952, is properly includible in the total income of the assessee of the previous year S. Y. 2008 for the assessment year 1953-54 ? Held that:- It is not necessary to discuss the first question, which raises the point of the validity of proceedings under section 34 of the Act, because it is common ground that it has become academic. The High Court had answered the supplementary question in favour of the assessee " A " For second question Mr. Viswanatha Sastri rightly concedes that the Pakistan portion of the dividend forms part of the assessee's total income, as defined in section 2(15) of the Act. The High Court was right in answering this question against the assessee " A ". For question three it is common ground that no certificate of assessment in the other Dominion has been produced before the Income-tax Officer. We agree with the High Court that the answer to this question is in the affirmative. For question four it will be noticed that the dividend due to the assessee has not been credited to any separate account of the assessee, so that he could, if he wished, draw it. Before the High Court it was never suggested that the dividend was credited or distributed. Accordingly we hold that the Pakistan portion of the dividend has not been credited or paid within the meaning of section 16(2) of the Income-tax Act. The answer to the question is, therefore, in the negative. Appeal dismissed.
|