TMI Blog1987 (3) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... r our opinion, under section 256(1) of the Income-tax Act, is : " Whether, on the facts and in the circumstances of the case, the assessee should be given credit for the tax deducted at source on dividends derived from the shares held in the name of C.B. Taraporewala ? " The assessee is " Trustees of H.E.H. The Nizam's Dependants and Khanazadas Trust, Hyderabad, " and the assessment year conce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded against him by the decision of this court in CIT v. Smt. Batool Begum [1976] 104 ITR 642. The Appellate Assistant Commissioner, while agreeing with the Income-tax Officer, directed, however, that the assessee should be taxed only on the net dividend income. So the " appellant should only be assessed on the net dividend income..." On further appeal, the Tribunal dismissed the appeal following t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on such share income should be given credit to. This was rejected by the High Court and, in our opinion, rightly, on the ground that the assessee was not the holder of the shares. Now, coming to the facts of the case before us, the assessees are the trustees of H.E.H. the Nizam's Dependants and Khanazadas Trust. certain dividend income is being treated as their income. If so, it must follow that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... end income is that of the trustees or it is not. If the dividend income is the income of the trustees, then they are also entitled to the benefit of being given credit to the tax deducted at source. The grounds upon which the authorities have refused to give credit to the tax deducted at source, logically extended, would also mean that the dividend income cannot be treated as the income of the tru ..... X X X X Extracts X X X X X X X X Extracts X X X X
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