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TMI Blog1966 (9) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... are in the family two other adult male members : Doraiswamy and Singharan. Sarathy holds 2,797 shares, Doraiswamy holds 100 shares and Singharan holds 100 shares in a limited company styled " The Chittoor Motor Transport Company (Private) Limited ". In this company the public are not substantially interested within the meaning of section 23A of the Income-tax Act, 1922, The shares were acquired w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he dividend income could not be assessed as the income of the assessee, " the Hindu undivided family not being the shareholder to whom the payment of advance or loan was made. " It was held by the Tribunal that the undivided family was not itself and could not be the registered shareholder of the company, and the individual members were the registered shareholders ; therefore, the advance or lo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the Tribunal has not considered the applicability of section 2(6A)(e) of the Income-tax Act as amended in 1955. Its decision rested on the opinion that payments made to the beneficial owner, namely, the undivided joint Hindu family, are not tantamount to payments made to the shareholders in that the family was not the legal owner of the shares. The Tribunal has not considered the further que ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g in appeal over the judgment of the Tribunal. If a question is raised by the Tribunal and referred to it, it is the function of the High Court to answer that question. The Tribunal will thereafter give effect to the opinion of the High Court. If the High Court finds that material facts are not stated in the statement of the case, or the Tribunal has not stated its conclusions on material facts, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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