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TMI Blog2004 (9) TMI 76X X X X Extracts X X X X X X X X Extracts X X X X ..... n a possible view which, in our opinion, is the correct view in the facts and circumstances of the case. At any rate, it is quite evident that even if the Revenue were to succeed, the balance amount would still be refundable as no tax was deductible on the dividend payable to the State Government. Since the burden had been fully borne by the assessee, such refund would also go back to the assessee. Thus, the whole exercise would be an exercise in futility. – Thus, we answer the question in the affirmative, i.e., in favour of the assessee - - - - - Dated:- 2-9-2004 - Judge(s) : N. K. SUD., S. S. GREWAL. JUDGMENT The judgment of the court was delivered by N.K. Sud J.- At the instance of the Revenue, the Income-tax Appellate Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e given proportionately only. The Commissioner of Income-tax (Appeals) upheld the order of the Assessing Officer. The assessee preferred a further appeal before the Tribunal. The Tribunal allowed its claim in the following terms: "A perusal of the above conclusion of the Tribunal would reveal that the arrangement was one by which an overriding charge was created on the dividends before they become the income of the corporation. The dividends to the extent of 2/3rds were to be diverted to the State Government and only 1/3rd of the dividends were assessable in the hands of the assessee-corporation. The apportionment of 1/3rd and 2/3rds between the assessee and the State Government was of course, after deduction of 1% service charges from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal, it is clear that no tax was deductible at all on the portion of dividend diverted to the State Government as it is not assessable under the Income-tax Act. The entire tax deducted at source clearly pertains to the dividend payable to the assessee and it has been found as a fact that the entire burden of this amount had fallen on the assessee-corporation. The Tribunal has taken a possible view which, in our opinion, is the correct view in the facts and circumstances of the case. At any rate, it is quite evident that even if the Revenue were to succeed, the balance amount would still be refundable as no tax was deductible on the dividend payable to the State Government. Since the burden had been fully borne by the assessee, such ref ..... X X X X Extracts X X X X X X X X Extracts X X X X
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