COMMISSIONER OF INCOME TAX Vs. PARKINS PRIVATE LIMITED

JUDGEMENT

(1.) THE question referred to us by the Income-tax Appellate Tribunal, Cochin Bench, reads as follows:

(2.) THE assessee is a company, Messrs. Parkins (P.) Ltd., Kottayam. During the relevant previous year to the assessment year 1960-61, the assessee received dividends from certain plantation companies assessed to agricultural income-tax under the State Act. THE total amount of dividend income so received was Rs. 1,28,5,50. THE assessee also made a business loss of Rs. 1,06,880 during the same previous year. THE total income assessable to tax under the Indian Income-tax Act, 1922, for short, the Act, was thus only Rs. 21,750. THE income-tax and super-tax payable on Rs. 21,750 was Rs. 9,787.50. THE assessee contended that under Section 49B of the Act he was entitled to claim a deduction from the tax payable from him of 20% of Rs. 81,306. Rs. 81,306 is admittedly the agricultural portion of the dividend of Rs. 1,28,550 received by the assessee. THE Tribunal upheld this contention.

(3.) IT is admitted before us that the relevant clause of the section that is applicable is Section 49B(b)(ii). IT is also submitted that "that portion of the dividend which is attributable/to the company assessed to agricultural income-tax" is Rs. 81,306. IT is a fact that the assessee in this case is a company. The only other thing remaining is the application of 20 per cent. to Rs. 81,306, The assessee is entitled to have 20 per cent. of Rs. 81,306 deducted from the tax payable by it.