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TMI Blog2017 (5) TMI 255X X X X Extracts X X X X X X X X Extracts X X X X ..... as it is not debited to its Profit & Loss Account. In the above view, it is not disputed that the unclaimed dividend which has been transferred to the Reserve Fund, has already borne income tax. Thus, bringing the same to tax, would amount to double taxation. Our view is fortified by the observations of this Court in CIT v/s. M/s. Deogiri Nagari Sahakari Bank Ltd. [2015 (1) TMI 1218 - BOMBAY HIGH COURT ] on an identical fact situation, that the view of the Tribunal that no tax is payable or transfer of unclaimed dividend to Reserve Fund, calls for no interference. The above observations were made even when no specific question with regard to the same, had been specifically raised therein. - Income Tax Appeal No. 1614 of 2014 - - - Dated: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the Revenue states that the issue raised herein stand concluded against Revenue and in favour of the Respondent-Assessee by decision of this Court in CIT v/s. Thane Bharat Sahakari Bank Ltd., (Income Tax Appeal No.1117 of 2013 dated 17th March, 2015). (ii) In view of the above submission, no occasion to examine it arises as even according to the Revenue, the above questions do not give rise to any substantial questions of law. Thus, not entertained. 4 Reg Question (c): (i) During the course of assessment proceedings, the Assessing Officer noted that the Respondent-Assessee had shown an amount of ₹ 6.56 lakhs as unclaimed dividend under the head 'statutory reserve fund'. This unclaimed dividend, according to the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sferred to Reserve Fund would amount to double taxation. The impugned order records the fact that the Revenue did not controvert the aforesaid submission made on behalf of the Respondent-Assessee. In the above view, Tribunal allowed the appeal of the Respondent-Assessee. (iv) The grievance of the Revenue before us is that once dividend is declared by the Respondent-Assessee, it becomes the property of the shareholder and the same is merely held by the bank as a custodian/ trustee for the shareholder. Therefore, transferring it to its Reserve Fund, changes the character of its holding. It, thereafter, owns the amount on its own account and not on behalf of the shareholder. (v) We note that it is an undisputed position before us that in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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