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1966 (11) TMI 19 - SC - Income TaxWhether the company was one in which the public were not substantially interested, and after the order was made, each individual shareholder had to be separately assessed in respect of the deemed income? Held that:- Under sub-section (3) of section 23A before it was amended by the Finance Act of 1955, tax payable on the proportionate share of any member of a company in the undistributed profits was liable to be recovered from the company if it could not be recovered from the shareholder. By the Finance Act, 1955, this clause was deleted and another clause which had nothing to do with recovery of tax was substituted as sub-section (3). By the Finance Act, 1957, that new sub-section (3) has been deleted. Section 45 deals with recovery of tax and, in the context in which it occurs, reference in section 45 to sub-section (3) of section 23A can only mean reference to that sub-section as it stood prior to the Finance Act of 1955. But that cannot be a ground for inferring that by section 23A which is referred to in sections 30 and 31 only intended to refer to the section as it stood before the Finance Act, 1955. Appeal allowed.
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