LAXMIPAT SINGHANIA vs COMMISSIONER OF INCOME-TAX, U. P. — 1971 PTD 924

Citation: 1971 PTD 924

Court: Supreme Court of India

Year: 1968

Decision Date: 1968-08-30

Parties: LAXMIPAT SINGHANIA vs COMMISSIONER OF INCOME-TAX, U. P.

Headnotes

Case cited as 1971 PTD 924

Judgment Text

Court Name: Supreme Court of India Judge(s): V. Ramaswa mi, A. N. Grover, J. C. Shah Title: LAXMIPAT SINGHANIA vs COMMISSIONER OF INCOME-TAX, U. P. Case No.: Civil Appeal No. 1188 of 1967 Date of Judgment:1968-08-30 Reported As: 1971 PTD 924 Result: Appeal allowed JUDGMENT JUDGMENT SHAH, J.----Atherton West & Company Ltd., Kanpur, was a company in .Which at the relevant time "the public" were not "substantially interested" within the meaning of section 23-A of the Indian Income-tax Act, 1922. At the general meeting of the company held on April 22, 1939, the company failed to declare dividend to the extent of 60 % of the assessable income of the company of its previous year as reduced by the amount of income-tax and super tax payable by the company in respect thereof: The Income-tax Officer, by order dated November 18, 1940, ordered in exercise of the power under section 23-A of the Indian Income-tax Act, as then in force, that an amount of Rs. 3,32,691 shall be deemed to be distributed amongst the shareholders as on the date of the general meeting of the company. On December 12, 1941, the Income-tax Officer determined the shares of the different shareholders to whom the income was deemed to be distributed, but gave no effect to the order by including the proportionate shares in the amount of the deemed income in the individual assessm ents of the shareholders for the appropriate assessment year. On April 24, 1942, the company in a general meeting resolved to make available…

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