TMI Blog2009 (2) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by J. S. KHEHAR J. - In this batch of four income-tax references, the following substantial questions of law have been framed at the hands of the Revenue : "1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in directing the assessing authority to determine the quantum of interest year to year on accrued basis in respect of suit filed cases? 2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that deduction under section 36(1)(viii) of the Income-tax Act, 1961, is allowable at the prescribed percentage of the total income before making deduction under section 36(1)(viii) itself? 3. Whether, on the facts and in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccordingly. In so far as the fourth question posed hereinabove is concerned, the issue pertains to the benefit of tax deducted at source. The respondent in this case, i.e., the Punjab Financial Corporation Limited, has an agreement with the State of Punjab. In terms of the aforesaid agreement, the amounts deposited by the State of Punjab with the Punjab Financial Corporation Limited are invested by the Punjab Financial Corporation Limited. The exactitude of the manner of sharing profits is admittedly in terms of the Gujarat pattern, wherein, so far as the dividend income is concerned, the equity dividend declared by the company (in which the investment has been made), one per cent. thereof has to be paid to the Punjab Financial Corporatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hed under section 203 in the assessment made under this Act for the assessment year for which such income is assessable : Provided that- (i) in a case where such person or owner or depositor or unit-holder or shareholder is a person, whose income is included under the provisions of section 60, section 61, section 64, section 93 or section 94 in the total income of another person, the payment shall be deemed to have been made on behalf of, and the credit shall be given to, such other person ; (ii) in any other case, where the dividend on any share is assessable as the income of a person other than the shareholder, the payment shall be deemed to have been made on behalf of, and the credit shall be given to, such other person in such cir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the apportionment of tax deducted at source, is to be in the same proportion, as the income earned by the parties (sharing the fruits of the common investment). 6. Our aforesaid determination would again lead to the same conclusion (as has been drawn hereinabove) mutatis mutandis in so far as the benefit of deduction on account of tax deducted at source in respect of income from preference shares as well. 7. In view of the above, the fourth question is answered in favour of the Revenue by holding that the respondent-assessee, i.e., the Punjab Financial Corporation could claim credit on account of the tax deduction at source in the same proportion as it shares the income from dividend income/income from preference shares with the S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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