1959 (6) TMI 28 - HC - Income Tax

Summary

The High Court of Bombay held that dividend income from bonus shares issued to the assessee's minor son is not taxable in the hands of the assessee under Section 16(3) of the Income Tax Act. The bonus shares were considered an accretion to the assets transferred and not assets transferred by the assessee. The court ruled in favor of the assessee, stating that the dividend income from the bonus shares did not arise directly or indirectly from the assets transferred by the assessee. The question was answered in the negative, and the Commissioner of Income Tax was directed to pay the costs of the reference.