O C M LTD Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) IN this petition under Article 226 of the Constitution, the petitioner has prayed for quashing the orders of the income-tax authorities and has also prayed for issue of a direction to the INcome-tax Officer to refund certain amount of tax.

(2.) THE case of the petitioner is, briefly, as follows : THE petitioner is a non-resident company which is holding shares in three companies registered in India. During the previous year relevant to the assessment year 1955-56 the petitioner received dividends from these three companies. One of these companies, namely, M/s. O.C.M. India (Private) Ltd., had declared an interim dividend of Rs. 2,30,000 and a final dividend of Rs. 1,15,000. Out of the gross interim dividend of Rs. 2,30,000 M/s. O.C.M. India (Private) Ltd. had deducted at the source Rs. 57,500 towards income-tax and Rs. 11,500 towards super-tax. While sending its return of income for the assessment year 1965-66 the petitioner omitted to include the interim dividend of Rs. 30,000 and according to the petitioner, this was by inadvertence. THE Income-tax Officer accepted the return of the petitioner and made the assessment. Hence, neither the gross dividend of Rs. 2,30,000 nor the deductions. of Rs. 57,500 towards income-tax and Rs. 11,500 towards super-tax were taken into consideration by the Income-tax Officer. In view of the provisions of Clause 2(b)(ii) of Part II of the First Schedule to the Finance Act, 1965, the income of the petitioner was not liable to super-tax. Hence, the sum of Rs. 11,500 deducted at the source towards super-tax before payment of the interim dividend, had to be refunded to the petitioner.

(3.) THE petitioner also preferred a revision petition to the Commissioner of Income-tax (hereinafter referred to as "the Commissioner") under Section 264 of the Income-tax Act, 1961, praying that the order of assessment might be revised so that the interim dividend of Rs. 2,30,000 received by it from M/s. O.C.M. India (Private) Ltd. and inadvertently not included in the original return, might be included in its income and the super-tax deducted at the source might be refunded to it (the petitioner). THE Commissioner dismissed the revision petition observing as follows :