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TMI Blog1969 (12) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... of the court was delivered by HEGDE J.-- In this appeal by certificate brought by the Commissioner of Income-tax, Nagpur, two questions arise for consideration. They are : " (1) What is the 'previous year' in respect of the source of income, viz., managing agency and selling agency and financing of the Binod Mills Ltd., Ujjain, for the purpose of assessment for the assessment year 1950-51-- whether the year ended March 31, 1950, or the year ended Diwali, 1949 ? and (2) Whether, for the purpose of bringing to tax the dividend income of the assessee for the assessment year 1950-51 and having regard to the provisions of the Part B States (Taxation Concessions) Order, 1950 (in short " Order "), the dividend income say of Rs. 34,468 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1922 (in short " the Act "). According to their view, the assessee had " once been assessed ". Therefore it was not open to it to vary its " previous year ". In view of that finding, the assessee was assessed on the basis that the Diwali year beginning from 2nd November, 1948, and ending on October 21, 1949, is the relevant account year. In that account year, the assessee derived net dividend income of Rs. 2,62,860 from the Binod Mills Ltd., Ujjain. Out of this income Rs. 34,468 were attributable to the profits that accrued or that could be deemed to have been accrued to the Binod Mills in Part A State. But the remaining amount of Rs. 2,28,392 was held to be attributable to profits which accrued in Part B State, viz., Madhya Bharat. As the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... " Order " would be at the concessional rates prescribed in the " Order " and further that the assessee is liable to pay super-tax at the concessional rates mentioned in that " Order " on the entire dividend income. Hence, this appeal. So far as the first question is concerned, viz., whether the assessee was entitled to take the financial year as the relevant previous year, the same is concluded by our decision in Commissioner of Income-tax v. Lady Kanchanbai (Civil Appeal No. 19 of 1969), just now delivered. For the reasons mentioned therein the decision of the High Court on this point is confirmed. This takes us to the second question, namely, whether the dividend income of the assessee should have been assessed both for the purpose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the income, profits and gains included in his total income as accrue or arise in any Part B State and are not deemed to accrue or arise, or are not received or deemed to be received within the meaning of clause (a) of sub-section (1) of section 4 of the Act, in the taxable territories other than the Part B States. " The assessee in the relevant " previous year " was a resident of Madhya Bharat. His income with which we are concerned in this appeal exclusively accrued or arose in Madhya Bharat. Therefore, the assessee is entitled to the benefit of paragraphs 5, 6, sub-paragraph (1) of paragraphs 11, 12 and 13 of the " Order ". Paragraph 5 deals with the income of a " previous year " chargeable in the Part B State in 1949-50. The asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... present purpose. In view of clauses (i) to (iii) of paragraph 6 read with the Explanation to paragraph 3 (v), the tax payable by the assessee, income-tax as well as super-tax, has to be computed on the basis of the formulae given in paragraph 6. In other words, the assessment will have to be made at the concessional rate mentioned in the Schedule to the " Order ". Paragraph 12 of the Order deals with dividends. It reads : " Where the total income of an assessee chargeable to tax for the assessment for the year ending on the 31st day of March, 1951, includes any income from dividends paid by a company registered in a State in which there was no State law relating to the charge of income-tax and super-tax and the dividend is paid o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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