MESSRS COLONY TEXTILE MILLS LTD., LAHORE vs THE INCOME-TAX APPELLATE — 1968 SCMR 1035

Citation: 1968 SCMR 1035

Court: Lahore High Court

Year: 1970

Decision Date: 1970-12-31

Parties: MESSRS COLONY TEXTILE MILLS LTD., LAHORE vs THE INCOME-TAX APPELLATE JUDGMENT

Headnotes

Case cited as 1968 SCMR 1035

Judgment Text

Court Name: Lahore High Court Judge(s): Nasim Hasan Shah, Sardar Muhammad Iqbal Title:MESSRS COLONY TEXTILE MILLS LTD., LAHORE vs THE INCOME-TAX APPELLATE JUDGMENT Reported As: 1971 PTD 1061 Result: A. Judgment JUDGMENT SARDAR MUHAMMAD IQBAL, J.-The petitioner's assessm ent for the assessment year 1962-63 was completed by the Income-tax Officer, Investigation Circle-IV, Lahore by his order dated the 30th of June 1967. The Company had redeemed in entirety 778,805 preference Shares of Rs. 100 each of the total value of Rs. 78,80,500. The Income-tax Officer held by his order that the entire amount so paid to the Preference Shareholders was dividend within the meaning of section 2(6-A)(d) of the Income --tax Act and that the amount received by the shareholders will tie taxable in their hands.. The petitioner-company preferred an appeal before the Income-tax Appellate Tribunal under section 33 (1)(a) of the Act and challenged this finding of the Income-tax. Officer alleging that the amount so distributed to the Preference Shareholders was not dividend within the meaning of section 2(6-A)(d) of the Act. The arguments in appeal were heard on 14 December 1970. The Tribunal, on the 15th of December 1970, passed an order stating that although the Income-tax Officer had given a finding that the amount distributed to Preference Shareholders was income from dividend yet he had not included the income in the assessment of the appellant for the year under consideration, and, therefore…

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