1969 (8) TMI 5

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..... sessee " is a shareholder of a company styled the Ukhara Estates Zamindaries Ltd. The following table sets out the amounts of dividend received by the assessment from the company and the years in respect of which they were received : Year of assessment Year of declaration of dividend Amount of dividend 1951-52 1357 B.S. Rs. 37,125 1952-53 1358 B.S. Rs. 29,250 1953-54 1359 B.S. Rs. 28,125 The assessee claimed that out of the amounts set out in the table only Rs. 8,669 for the year 1357 B. S., Rs. 20,469 for the year 1358 B. S., and Rs. 21,822 for the year 1359 B. S., were taxable as dividend, and the remaining amounts were not taxable, since they we .....

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..... was in the hands of the assessee, receipt of dividend with the meaning of section 2(6A) of the Indian Income-tax Act, 1922 ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the receipt by the assessee of the amount attributable to salamis realized by the Ukhara Estate Zamindaries (P.) Ltd., for grant of long-term leases after the 31st March, 1948, was a receipt of income in the hands of the assessee and taxable as the income of the assessee from other sources ? (3) Whether, on the facts and in the circumstances of the case, the distribution to the assessee of the amount attributable to salamis realised by the Ukhara Estate Zamindaries (P.) Ltd., for grant of long-term leases afte .....

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..... of Income-tax, but interest which is statutorily payable on compensation is income and is not capital gain : Dr. Shamlal Narula v. Commissioner of Income-tax. The assumption made that the entire amount of compensation is deemed to be capital gain cannot therefore be sustained. It is also necessary to observe that in Appeals Nos. 737 to 739 of 1968 and 13 of 1968 and 1621 of 1968, which arose out of Reference No. 131 of 1961 and other references, decided by this court on July 25, 1969, the only question of law raised was whether distribution of dividend out of capital gains was taxable. The scope of enquiry in this group of cases, in view of the form of the questions, is more extensive. In appeals Nos. 737 to 739 of 1968 we held that, ha .....

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