9911796707
TMI Blog1981 (1) TMI 28X X X X Extracts X X X X X X X X Extracts X X X X ..... nafter referred to as " the company ") distributed a dividend during the financial year 1955-56. 262 shares of the company stood in the name of Shri Ramanand Sachdeva (hereinafter referred to as " the individual "). Ramanand Sachdeva, however, was also the karta of a Hindu joint family (hereinafter referred to as " the family "). The individual had received from the company certain emoluments amounting to Rs. 28,879 and dividend of Rs. 13,160. For the assessment year 1956-57, relevant to the previous year which ended on March 31, 1956, the assessments of the individual was completed on February 29, 1958. The total income assessed was Rs. 46,710 comprising of the salary income (stated here to be Rs. 28,879) and dividend income of Rs. 17,83 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he figure in the individual assessment) and as no dividend warrant had been filed by the family, credit for the said amount of difference between the gross and net dividends could not be given in the assessment of the family. In addition to the above two items, there was a business loss of Rs. 6,786 which had to be set off. There was also a slight difference in the figures of salary income and dividend income between the figures taken in the hands of the individual and those considered in the family assessment as already pointed out. The family assessment was, therefore, completed on a total income of Rs. 39,279 with no credit for Rs. 4,605. The family preferred an appeal to the AAC contending that the inclusion of the salary income in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 4,605 (being the difference between the gross and net amount of dividends referred to in the assessment order). This contention was rejected by the Tribunal. It was pointed out that this stand was contrary to the decision of the Supreme Court in the case of Kishanchand Lunidasing Bajaj v. CIT [1966] 60 ITR 500 (SC), where it had been held that the benefit of grossing up and consequential tax credit would be available only to the registered shareholder and not to the real owner of the shares. In the view taken by the Tribunal, the family's appeal had to be dismissed. However, before the Tribunal disposed of the appeal, the assessee filed an application seeking permission to raise an additional ground of appeal, which reads as follows: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f dividend income ? 2. Whether, on the facts and in the circumstances of the case, the adjustment to be made in the assessment of Shri Ramanand Sachdeva in the status of individual was not to be limited to the next dividend, as the credit for tax deducted at source was available only to the registered shareholder ? 3. Whether, on the facts and in the circumstances of the case, the assessee could obtain the benefit of tax deducted at source on the dividend income?" So far as the first question is concerned, we think that it is quite clear that the Tribunal was justified in directing that the department should make appropriate adjustments, while finalising the family assessment, in respect of the tax realised in the case of the individu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... im or to decide the matter according to his interpretation of the statutory provisions. He says that if and when a controversy arises, it would be time enough for the parties to put forward their respective contentions in further appeals against the officer's determination. At this stage, he urges, it is premature to speculate on the-respective stands of the ITO and the assessee and to raise and decide a controversy which has not yet arisen. It appears to us that the stand taken by Shri P. N. Monga is correct. We do not think we are called upon at t is stage to express any opinion regarding the matter in which the adjustment directed by the Tribunal should be carried out. All that the Tribunal has stated is that appropriate adjustments sh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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