9911796707
TMI Blog1956 (3) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Mysore Merchants Ltd., can be considered to be a holding of members of the public, then this assessee company would not be a company in which the public were not substantially interested, and therefore the attempt of Mr. Palkhivala was to satisfy us that the shares held by Mysore Merchants Ltd., were shares held by members of the public. This view was not accepted by the Tribunal and hence this reference. Turning to section 23A, sub-section (1) provides that in the case of a company which has distributed less than 60 per cent, of the assessable income, the income may be assessed in the hands of the shareholders, the dividend income, notwithstanding their not being distributed, being deemed to be the income of the shareholders. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ingenious argument advanced by Mr. Palkhivala is that it is not sufficient to look at the register of shareholders of the Mysore Merchants Ltd. We must go further and determine whether it made profits, whether it did not distribute 60 per cent, of its dividends, and apply all the provisions contained in sub-section (1) of section 23A. In our opinion that is not the correct construction to be put upon the expression used by the Legislature in this explanation. Looking to the scheme of the section, the marginal note which may be looked at in order to understand the drift of the section is Power to assess individual members of certain companies Therefore, the power conferred under section 23A is not with regard to all companies but only ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of section 23A shall not be applied in respect of profit and gains of any previous year ending before the appointed day, unless the State law contained a provision corresponding thereto, and what is urged is that under this clause the Mysore Merchants Ltd. was exempted from the application of the provisions of section 23A and therefore it is suggested that this is not a company to which section 23A applies and the holding of this company would be a holding by members of the public. In the first place, we are not applying section 23A to the Mysore Merchants Ltd. In the second place, what clause 14 means is that when there is a company to which section 23A applies, it would not be liable to tax provided that company satisfies the provisions o ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
