1956 (2) TMI 71

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....b for the Respondent JUDGMENT Rajagopalan, J.- The question referred to this Court under section 66(1) of the Income-tax Act was: "Whether the sum of Rs. 31,250 was rightly taxed." The assessee held ten shares of the face value of Rs. 8,750 in Sri Kannan Rice Mills Ltd., hereinafter referred to as the company. The subscribed capital of the company was Rs. 43,750 most of which was ap....

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....e basis for sustaining the assessment was that it amounted to capital gains, taxable under section 12B of the Income-tax Act, which in the opinion of the Tribunal was more favourable to the assessee. It should be noted that the company itself was assessed to capital gains under section 12B and that was sustained by this Court in R.C. No. 8 of 1951 Sec [1954] 26 ITR 351. Obviously section 12B wi....

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....end" within the meaning of section 2(6A)(c) and we refrain from expressing any opinion on that question. Assuming without deciding it, that the amount was dividend which accrued to the assessee in his accounting year, the proviso to section 2(6A)(c) should suffice to exclude the amount in the assessment year in question. Assuming that the distribution by the liquidator was out of "accumulated prof....