1966 (1) TMI 12

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.... the company itself, the distribution of dividend was deemed to have been declared on the 29th of December, 1951, instead of 20th of May, 1952. This finding was recorded in the appeal preferred by the Indian Mica Supply Company (Private) Limited and the necessary modification of the order under section 23A(1) followed therefrom. In the assessee's appeal against the assessment order in connection with 1953-54, under section 34 of the Act, the Appellate Assistant Commissioner held that the deemed dividend income of the assessee should have come up for consideration in the assessment year 1952-53 and not in the year 1953-54. In that view, he annulled the assessment made under section 34 and restored the original assessment made under sectio....

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....ssment for the year 1953-54, the assessee's share of the dividend from the company was not included. When, later on, it came within the information of the Income-tax Officer that such dividend was to the credit of the assessee, proceedings under section 34 of the Income-tax Act were initiated and that amount of deemed dividend was included in the assessee's total income. Against that, the assessee had gone in appeal to the Appellate Assistant Commissioner. By that time, in an appeal by the company, the date of declaration of the dividend was held by the appellate authority to be the 19th December, 1951, and not 20th of May, 1952. In that view of the matter, the Appellate Assistant Commissioner, in the assessee's appeal, set aside the inclus....

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....-49 on the 5th of December, 1957. The question that arose before their Lordships of the Supreme Court was whether that was saved under the provisions made in the second proviso to sub-section (3) of section 34 of the Act. It was held that the " finding " that could be given by the appellate authorities under the Income-tax Act must be related to the assessment year involved in the case. Any other observation by such authority in regard to and in connection with the other years will not be taken as a " finding " within the meaning of sub-section (3) of section 34. In that case, the Appellate Assistant Commissioner had held that the interest income which had been included in the total income of the assessee for the assessment year 1949-50 was....