TaxTMI 
TaxTMI 
1967 (6) TMI 12
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....year but had been converted into a non-resident public limited company before the date of the annual general meeting at which the accounts of the previous years were adopted ? " The question arises in the following circumstances: The assessee, M. M. Ispahani Limited, was incorporated as a private company on Decemher 19, 1934. It used to have its registered office at No. 51, Ezra Street, in the town of Calcutta. A few months prior to the partition of British India and the setting up of the two Dominions of India and Pakistan, the assessee shifted on June 26, 1947, its registered office from No. 51, Ezra Street, in the town of Calcutta, to Chittagong now in East Pakistan. Thereafter, on July 10, 1947, the assessee private company converted....
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.... preferred by the assessee against the order of the Income-tax Officer, before the Appellate Assistant Commissioner, failed to this extent that the objections made by the assessee, as quoted above, were negatived, but there was relief given to the assessee to the extent that the Appellate Assistant Commissioner directed the Income-tax Officer to charge to tax only that portion of the dividend which was proportionate to the profits taxed in India. The assessee preferred a second appeal before the Appellate Tribunal, on the same grounds of objection as was being harped upon throughout. The Appellate Tribunal dismissed the appeal, firstly, on the ground that the Income-tax Officer was not concerned with the status of the assessee at any time s....
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....blic limited company and no other point appears to have been urged before the Tribunal. Mr. Sen, however, argued that, in the statement of case, the objection on the ground that the assessee was a foreign company was equally emphasised upon and the question referred to this court included that aspect of the objection as well. In our opinion, the statement of case does not correctly summarise the order of the Appellate Tribunal and proceeds on the imagination that the non-liability of the assessee under section 23A because it was a foreign company was argued before the Tribunal and the question of law referred to this court need include both the objections made by the assessee. Since, however, the question, as framed, is wide enough to inclu....
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....he undistributed portion of the assessable income of the company of that previous year as computed for income-tax purposes and reduced by the amount of income-tax and super-tax payable by the company in respect thereof shall be deemed to have been distributed as dividends amongst the shareholders as at the date of the general meeting aforesaid, and thereupon the proportionate share thereof of each shareholder shall be included in the total income of such shareholder for the purpose of assessing his total income : .... Provided further that this sub-section shall not apply to any company in which the public are substantially interested or to a subsidiary company of such a company if the whole of the share capital of such subsidiary compan....