KISHINCHAND CHELLARAM Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE assessees are father Kishinchand Chellaram, his two sons Shewakram and Lokumal and grandson Murli Tahilram. A private limited company called Chellson Ltd., was incorporated in 1941 and its shareholders were Kishinchand, his two sons and grandson. We are concerned with the assessment of these four individuals for the assessment year 1945-46, and our decision with regard to Kishinchand will also apply to the facts relating to the assessment of his two sons and grandson.

(2.) IT appears that in the year of account of these assessees, which was the financial year 1944-45, this limited company passed a resolution on the 15th of July 1944, declaring a dividend at 60 per cent. and pursuant to this resolution a sum of Rs. 30,000/- was credited to Kishinchand's account on 29-9-1944.

(3.) IT is a pure accident that the assessment was not finalised but that the appeal from the assessment was pending before the Appellate Assistant Commissioner. There may have been no appeal preferred to the Appellate Assistant Commis sioner in respect of this assessment, in which case the assessment would have been completed after the Income-tax Officer had passed the assessment order.