TMI Blog1985 (3) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... r going through the facts and circumstances of this case, we are satisfied that the said question is not a referable one. The assessee company was formed by the amalgamation of three companies, viz., M/s. Madura Mills Ltd., M/s. A. F. Harvey Ltd. and M/s. J. P. Coats (India) P. Limited. The amalgamation took place on January 1, 1975, with retrospective effect from July 1, 1974. For the assessment year 1976-77, dividend income of Rs. 14,33,986 arose to M/s. J. P. Coats (India) P. Ltd. and M/s. A. F. Harvey Ltd., on the shares held by them in Madura Mills Limited. This dividend was declared at the annual general meeting of M/s. Madura Mills Ltd. held on December 27, 1974. On the said dividend income of Rs. 14,33,986, a sum of Rs. 3,29 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ose hands the dividend income had not been taxed. Aggrieved by the order of the Tribunal, the assessee has now sought reference on the question referred to above. In the application filed under section 256(1) by the assessee, the Tribunal has specifically found that it is at the instance of the assessee that the entire dividend income has been treated as not its income. That finding which was rendered only at the instance of the assessee itself automatically results in the tax deducted at source from and out of the gross dividend income not being part of the assessee's income. It is not in dispute in this case and, as a matter of fact, the learned counsel for the assessee takes up the stand that the dividend income is not the assessee's i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed, it should be assessed in the hands of the companies who are the shareholders of M/s. Madura Mills Limited; but so far as the tax deducted at source is concerned, the assessee must get credit. We are of the view that the dividend income of which the tax deducted at source is a part, cannot be treated differently from the gross dividend, which, even according to the assessee, should be taxed in the hands of the companies which are shareholders of M/s. Madura Mills Limited. The tax deducted at source can be given credit only in the hands of the company in whose hands the income is to be assessed. Section 198 of the Income-tax Act, 1961, says that all sums deducted at source shall, for the purpose of computing the income of the assessee, be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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