TMI Blog1977 (5) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Indian Income-tax Act, 1922, and that accordingly only Rs. 1,001 out of the total advance of Rs. 29,563 made by the said company to the assessee in the said accounting year could be brought to tax by virtue of section 12(1B) of the said Act for the assessment year 1955-56 ?" As there is no dispute regarding facts in this case it is not necessary to state the same in any detail. In this reference we are concerned with the assessment year 1955-56, of which the previous year is the Bengali Samvat year 1361 B.S., which ended on 13th April, 1955. The assessee, Prantosh Ghattack and others, were assessed in the status of legal heirs of late Bhabatosh Ghattack for the assessment year under reference. Upon the death of the said Prantosh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee preferred an appeal to the Appellate Assistant Commissioner against the said order. The Appellate Assistant Commissioner was of the view that the amount of accumulated profits available for distribution as dividend was Rs. 64,106 and that out of this sum, a sum of Rs. 9,286 had already been treated as dividend in the hands of Messrs. I. T. Ghattack and others leaving the balance of Rs. 54,280. On this basis, the Appellate Assistant Commissioner held that it would be proper to consider Rs. 27,140 being 1/2 of the aforesaid sum of Rs. 54,280 as dividend in the hands of the assessee. Being dissatisfied with the decision of the Appellate Assistant Commissioner, the assessee preferred a second appeal to the Tribunal. Before the Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h this point in this reference. Thereafter, at the instance of the revenue the Tribunal referred the question of law set out hereinbefore under section 66(1) of the Indian Income-tax Act, 1922, to the High Court. The short point that arises for consideration in this reference is whether the advance made to the assessee in the assessment year 1952-53 to the extent of the total amount of accumulated profit of that year or only a portion thereof which is equal to the assessee's one-fourth share of the accumulated profit (i.e., Rs. 1,001 in the instant case) should be taxed as dividend in the year under consideration, viz., assessment year 1955-56, under section 2(6A)(e) read with section 12(1B) of the Indian Income-tax Act, 1922. While con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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