TaxTMI 
TaxTMI 
TaxTMI 
1973 (3) TMI 38
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....f the dividend attributable to the profits of the companies assessed to agricultural income-tax which has not been subjected to tax under the Indian Income-tax Act in the hands of the shareholder ? " The assessee is a company, Messrs. Parkins (P.) Ltd., Kottayam. During the relevant previous year to the assessment year 1960-61, the assessee received dividends from certain plantation companies assessed to agricultural income-tax under the State Act. The total amount of dividend income so received was Rs. 1,28,550. The assessee also made a business loss of Rs. 1,06,880 during the same previous year. The total income assessable to tax under the Indian Income-tax Act, 1922, for short, the Act, was thus only Rs. 21,750. The income-tax and super....
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....n this case, the fact that the assessee had made a business loss of Rs. 1,06,880 during the concerned previous year, has reduced the quantum of the tax payable by the assessee to a sum of Rs. 9,787.50. If this loss had not been sustained, the tax payable by the assessee would have been very much higher and if he had business income apart from the dividend income, the tax would still have been higher. But these considerations of the quantum of the tax payable by the assessee, as we indicated, have nothing to do with the extent of the relief granted by section 49B of the Act ; this has to be determined only with reference to the provisions in that section and those provisions appear to us to be clear. We shall presently read the section but w....
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....nt of the dividend attributable to the profits of the company assessed to agricultural income-tax bears to its total profits assessed to agricultural income-tax, reduced by the amount of refund, if any, allowed to him by the State Government; or (b) where the shareholder (i) is not a company, the amount of income-tax (but not super-tax) payable by him under this Act ; and (ii) is a company, twenty per cent. ; on that portion of the dividend which is attributable to the profits of the company assessed to agricultural income-tax; whichever is less." It is admitted before us that the relevant clause of the section that is applicable is section 49B(b)(ii). It is also submitted that "that portion of the dividend which is attributable to the....