1952 (4) TMI 26

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..... ame registered in the books of the company. In the assessment year 1948-49 he returned the incomes from dividend on these shares and produced the relevant dividend certificates. As the shares did not stand in the name of the assessee but other persons, the Income-tax Officer did not treat this income as income from dividends and did not grant the relief under section 16(2) and section 18(5) of the Indian Income-tax Act. The receipt was treated as income from other sources. This order was confirmed by the Appellate Assistant Commissioner and the Appellate Tribunal. 3. Under section 4(1) the total income of any previous year of any person includes all income, profits and gains from whatever source derived which are received or are deemed .....

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..... come-tax though the tax on this income has in fact been paid by the company which has distributed that dividend. Section 48(3) is not relevant. It says that where an income of one person is included under any provision of the Act in the total income of any other person, such other person only shall be entitled to a refund under the section in respect of such income. The sum in question is not the income of any other person which under the provisions of the Act is included in the total income of the assessee. 4. From the foregoing provisions it is clear that the person who is entitled to the benefit of the income-tax paid by a company on the dividend distributed by it is the shareholder. Relying on Shri Shakti Mills Ltd. v. Commissioner .....

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..... nce to prove that the transfers in his favour were complete. 5. Under Regulation 18 of Table A in the First Schedule to the Companies Act the transferor shall be deemed to remain holder of the share until the name of the transferee is entered in the register of members in respect thereof. The right to transfer may be subject to conditions. The learned counsel has not brought to our notice any article of the company in respect of whose shares the amount in question was received which dispenses with this requirement of Regulation 18. Pending registration the transferee has only an equitable right to the shares transferred to him. He does not become the legal owner until his name is entered in the register in respect of shares transferred to .....

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