BURMAH OIL CO LTD Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) The petitioner is a non-resident company. It was assessed by the Income-tax Officer, Central Circle XXXI, on November 28, 1964, under Section 143(1) of the Income-tax Act, 1961, for the assessment year 1964-65 (the accounting year ending March 31, 1964). From the assessment order, it appears that the income of the petitioner for the said assessment year consisted of dividend from Indian companies, viz., Oil India Limited and Burmah-Shell Refineries Ltd., totalling to Rs. 3,07,72,919 and the tax payable thereon was computed at the rate of 25% at Rs. 76,93,229.75 without allowing any rebate in accordance with the proviso to Paragraph D of Part I of the First Schedule to the Finance Act, 1964. After giving credit for the tax deducted at source, the tax payable was determined at nil.

(2.) The Indian company, i.e., M/s. Burmah-Shell Refineries Ltd., was assessed under Section 143(3) of the Income-tax Act, 1961, for the assessment year 1964-65 on March 26, 1969. In the said assessment, the said Burmah-Shell Refineries Limited was treated as a company in which public were not substantially interested within the meaning of Section 2(18) of the said Act. The Income-tax Officer who assessed the said Burmah-Shell Refineries Limited also held that the said company was not engaged in the business of manufacture or production of one of the articles or things as specified in Part IV of the First Schedule to the Finance Act, 1964.

(3.) On March 28, 1969, the petitioner-company through its constituted attorney, M/s. Price Waterhouse Peat & Co., made an application before the Income-tax Officer under Section 237 of the said Act claiming refund of a sum of Rs. 18,17,291.83 paid in excess of the amount of tax with which the petitioner-company was properly chargeable under the Act. It was explained that as the time for filing an application for refund under Section 237 of the said Act was to expire on March 31, 1969, and as the original application was sent to the non-resident petitioner-company for signature, M/s. Price Waterhouse Peat & Co. filed the said application within the period prescribed under Section 239(2)(a) of the Act.