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TMI Blog1931 (1) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... o having their share register in London, though that fact is not stated. The third source is interest earned in British India and the fourth source is income accruing, arising and received outside British India. 3. The questions arise in respect of the second source, i.e., dividends paid in the United Kingdom by companies doing business in British India, but registered in London and having their head offices in London. The particular companies from which the income is derived are admitted to be companies within the definition contained in Section 2(6) of the Indian Income-tax Act. 4. The first question is, whether the assessee is liable to be asssessed in respect of income derived from those companies, and it appears to me to be quite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y as defined by the Act who has received a dividend therefrom. Therefore, he is a person to whom, prima facie, the section applies. He has then got to satisfy the Income-tax Officer that the rate of income-tax applicable to the profits or gains of the company in question at the time of the declaration of such dividend (which was eighteen pies) is greater than the rate applicable to his total income of the year. 7. Now, in order to ascertain what his total income of the year is one has to look, first of all, at the definition in Section 2(16) of the Indian Income-tax Act, which says:-- 'total income' means total amount of income, profits and gains from all sources to which this Act applies computed in the manner laid down in Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al world income, that is, in the case of Major Goldie, all the sums set out in paragraph 4 of the case, which I understand to be gross income before any deduction in respect of English or Indian Income-tax. As I understand from the case that this total world income would be liable to be assessed at the rate of twelve pies, and as the company has been assessed at the rate of eighteen pies, I think that the assessee is entitled to a refund at the rate of six pies. 9. With regard to the actual questions put to us, we are disposed to think that they are too wide to be answered in the actual form in which they are put. 10. I propose to answer question (1) by saying that dividends received outside British India from sterling companies regis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vidend paid in the United Kingdom by a company doing business in British India but registered in London and having its head office in London. The third an item of ₹ 10 interest paid him in India and the last income accruing wholly outside British India. Two of these are items on which income-tax would ordinarily be assessable in India, and one of which is totally exempt from the tax. 15. The question before us is whether the second kind or (b) income derived from the dividend paid by the company registered in England but doing business in India can be included within the definition of total income under Section 23(8). This is a charging section only and refers to total income without defining it. The definition is in Section 2( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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