COMMISSIONER OF INCOME TAX Vs. COTTON FABRICS LIMITED

JUDGEMENT

(1.) IN this case at the instance of the Revenue the following question has been referred to us for our opinion :

(2.) BEFORE we deal with the reference proper, it must be pointed out that the title of the reference and all relevant records are required to be corrected in view of an order passed by this High Court on April 7, 1975, in Company Petition No. 18 of 1975 connected with Company Application No. 50 of 1974. By the said order of April 7, 1975, Cotton Fabrics Ltd., Baroda, the respondent herein, that is, the assessee company, has been allowed to be merged with Distributors (Baroda) Private Ltd., and the result, therefore, is that after the said order the assessee company is the Distributors (Baroda) Private Ltd. Accordingly, we direct that the cause title to this reference and all relevant papers be corrected to read 'Distributors (Baroda) Private Ltd. "as the respondent" that is, as the assessee company.

(3.) IN order to appreciate the contentions which have been raised in this case, it is necessary first to refer to certain admitted facts. It is admitted : (1) that the U K companies deducted tax at the standard rate while paying dividends to their shareholders ; (2) the U K company concerned has not paid the amount thus deducted to the U K Government ; and (3) that the assessee has not been assessed in the U K.