9911796707
TMI Blog1970 (4) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... us years was rightly included in the total income of the company for the assessment years 1956-57 and 1957-58 ?" The assessee is a limited company having considerable investment in shares. For the assessment year 1956-57 an amount of Rs. 1,843 was assessed as income on account of dividends in the hands of the company while for the assessment year 1957-58 no income was assessed on account of dividends. The Income-tax Officer found that dividends amounting to Rs. 40,562 (net) had been declared by the Calcutta Gas Co. Ltd. and dividends amounting to Rs. 5,000 had been declared by the Moon Mills Ltd. during the financial year 1955-56. Similarly, dividends amounting to Rs. 7,500 net ha been declared by the Moon Mills Ltd. during the financial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment year 1957-58. When appeals were taken to the Tribunal by the assessee the controversy centered on the question whether the dividends were to be included during the relevant assessment years unless they had been received by the assessee since it was following the cash system of account or whether mere declaration of dividends amounted to a payment unless qualified by any condition. The Tribunal only accepted the contention of the assessee that if dividends had to be included on the basis of the dates of declaration then those dividends which had been declared during the earlier period should be excluded. However, reference was sought by the assessee on the question of law which has already been set out. The judgment of the High ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd made the amount of dividend unconditionally available to the member entitled thereto. It was said that the legislature had not made dividend income taxable in the year in which it became due; by express words of the statute it was taxable only in the year in which it was paid, credited or distributed or was deemed to be paid, credited or distributed. The other cases which have been referred to and in which the above view has been reiterated are Ramesh R. Saraiya v. Commissioner of Income-tax and Punjab Distilling Industries Ltd. v. Commissioner of Income-tax. In the present case apart from the declaration of dividend there are hardly any facts found by the Tribunal from which it can be legally inferred that there was payment or distrib ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
