1983 (12) TMI 56 - HC - Income Tax

Summary

Issues Involved:

1. Entitlement to rebate under Para. 6A of the Part B States (Taxation Concessions) Order, 1950, in reassessment proceedings.
2. Competency of the Tribunal to consider the proper rate of rebate in respect of dividend income.
3. Applicability of rebate rates for the assessment years in question.

Summary:

Issue 1: Entitlement to Rebate in Reassessment Proceedings

The court held that the assessee is entitled to the benefit of concession or rebate u/s 6A of the Part B States (Taxation Concessions) Order, 1950, in the course of reassessments u/s 34 of the Indian Income-tax Act, 1922, for the whole of the dividend income, including the actual dividend income received by the assessee, irrespective of whether this concession was claimed during the original assessments. The reassessment proceedings set aside the original assessment orders, allowing the assessee to claim the rebate during reassessment or in appeals against reassessment orders.

Issue 2: Competency of the Tribunal

The Tribunal was deemed competent to consider the question of the proper rate of rebate in respect of dividend income arising out of Part B States for the assessment years in question. The reassessment proceedings reopen the entire assessment, allowing for a fresh determination of the total income and tax payable, including the consideration of rebates.

Issue 3: Applicability of Rebate Rates

The court clarified that the rebate on dividend income arising out of Part B States under Para. 6A of the Concessions Order is applicable for the assessment years 1952-53, 1953-54, and 1954-55 at the rates of 40%, 20%, and 10% respectively. The rebate is not applicable for the assessment year 1955-56, even for dividend income, as the concession was explicitly limited to a period of five years starting from the assessment year 1950-51.

Conclusion:

The reassessment proceedings allow the assessee to claim rebates on the entire dividend income, including actual and deemed dividends, for the specified assessment years. The Tribunal has the authority to determine the proper rate of rebate, which is confined to the assessment years 1952-53 to 1954-55, as outlined in Para. 6A of the Concessions Order.