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1961 (7) TMI 7 - SC - Income TaxWhether the dividend income of ₹ 54,307 is to be assessed in the hands of the assessee, the Hindu undivided family ? Held that:- The question here is one of interpretation only and that interpretation must be based on the terms of the section. The fiction enacted by the legislature must be restricted by the plain terms of the statute. Nor do we see how it can be said that the interpretation put on section 23A that it is confined to a shareholder registered in the books of the company defeats the very purpose of the section. The section will still apply to shareholders of the company and to their income will be added the notional income determined under section 23A. Highr court correctly answered the question in favour of assessee by concluding that in respect of an income which was deemed to be distributed under the provisions of section 23A, the section in terms provided that the proportionate share of the shareholders in such distribution should be included in their income ; and as the Hindu undivided family was not and could not be a registered shareholder of the company, the amount in question could not be treated as the income of the Hindu undivided family under the provisions of that section. Appeal dismissed.
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