1987 (4) TMI 9

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.... relevant assessment year is 1954-55 corresponding to the accounting period November 1, 1952, to October 31, 1953. The assessee-respondent who is now dead derived income from securities, dividends, directors' fee, commission and trading in stock. During the assessment year in question several aspects were disputed, but assessability of three sums has survived for examination of this court, namely ....

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....ing payment of salary was passed after the expiry of the relevant period, there has been an oral agreement preceding it to discontinue the payment of salary. On the facts found, even on the basis of the mode of accounting adopted by the assessee, the sum would not be addable. On the first score, the Revenue must fail. The second aspect relates to the dividend income from the two companies. The ....

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....in Ltd. [1970] 76 ITR 628, it was held that the proceedings against Sahu Jain Ltd. under section 23A of the Act in regard to the assessment years 1953-54 and 1954-55 were bad. As consequence of those decisions, it is plain that the assessee also is not liable to pay tax on the sum of Rs. 1,82,141." Learned counsel for the Revenue placed before as the decision of this court in CIT v. Sahu Jain L....

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....al Bank of India Ltd.'s case [1967] 65 ITR 536 has become nullified and the assessee would be liable for the amount. If the decision of the High Court in [1967] 65 ITR 536 stands, the order of the High Court in this regard has to be sustained. Section 2(6C)(iii) is the relevant provision for deciding the taxability of the perquisites. The amendment of that provision under the Finance Act, 1955,....