LAWS(MAD)-1958-7-14

RAMASWAMI NAIDU V Vs. COMMISSIONER OF INCOME TAX

Decided On July 07, 1958
V. RAMASWAMI NAIDU Appellant
V/S
COMMISSIONER OF INCOME-TAX, MADRAS Respondents

JUDGEMENT

(1.) UNDER Section 66(1) of the Income-tax Act the Income-tax Appellate Tribunal of Bombay has referred the following question for the decision of this Court;

(2.) THE material facts are these: V. Rama-swami Naidu, the Kartha of a Hindu undivided family, held in the names of various members of the family 10208 shares of Rs. 10 each in Agravas, Estates Ltd., a company incorporated in Ceylon. For purposes of the Indian Income-tax Act this company is a foreign company, G. V. Govinda-swami Naidu another assesses, and. his wife, Govindarnmal, held 10,000 shares in the same company between them. At a meeting of the general body of shareholders of this company held on 11-11-1950 certain dividends were declared and subsequently paid in the manner and to the extent indicated below: <FRM>JUDGEMENT_33_ITR35_1959Html1.htm</FRM>

(3.) IT is thus seen that the amount of Rs. 8024 which the company deducted from the dividend warrant of Ramaswami Naidu and the amount of Rs. 7375 which it deducted from the dividend warrant of Govindaswami Naidu were moneys which was entitled to retain for itself and which it was not bound to pay over to the Ceylon Government.