2000 (9) TMI 25

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..... DAVE J.-At the instance of the Revenue, the following three questions have been referred for the opinion of this court under the provisions of section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"): " (1) Whether, it would be necessary that at least 20 per cent. of the voting power is exercisable by the assessee or by the persons referred to in sub-section (3) of se....

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....ence application was decided on September 16, 1993. At the time of hearing, the reference application in the case of the present assessee, the Tribunal had referred to Income-tax Reference Application No. 557 of 1980 decided by this court and perhaps, through oversight, the judgment in the case of Sarabhai Foundation in 1. T. R. No. 557 of 1980 - [1994] 209 ITR 390 was looked into and the question....

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....bmitted that as the said question has been now decided, looking to the law laid down in the judgments referred to above, the amount of dividend received by the assessee, which is Rs.1,777 will have to be bifurcated into two parts. The dividend, which was received by the assessee on the shares which were donated to the assessee and the shares which were received by the assessee by way of bonus, ....

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....h regard to break-up of the dividend as mentioned above are not available to this court, we answer the question as under: The dividend which was received by the assessee on the shares which were donated to the assessee and the shares which were received by way of bonus by the assessee, would be exempted as per the provisions of the Act and the dividend which was received on the shares which wer....