TaxTMI 
TaxTMI 
1993 (6) TMI 5
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....forms to the guarantor ? (2) Whether, the Tribunal has rightly deleted Rs. 2,98,605 dividend income from the total income of the assessee ? " The assessee is an individual, and the relevant assessment year is 1970-71. The crux of the matter is whether the property in shares held by James Finlay and Company Limited passed to the purchasers. The assessee and his brother, Ratansinh Mulji (" purchasers "), jointly agreed with James Finlay and Co. Ltd., Glasgow (" vendors ") to purchase the shares in three textile mills, viz., Swan Mills Limited, Finlay Mills Limited and Gold Mohur Mills Limited, at a total price of Rs. 94,82,181 by an agreement dated February 20, 1968. Under the terms of the agreement, the payment was to be made in ten six-mo....
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.... remaining four-fifths of the vendor's shareholding in the three companies stood deposited with the insurance company in terms of the said agreement. The dividend received on that portion of the shareholdings, which was in the custody of the insurance company, was received by the insurance company for and on behalf of the vendors and was made over to them. Did the purchasers become owners of the entire shareholding of the vendors including the remaining four-fifths portion during that previous year, was the controversy. According to the assessee, there was no actual transfer of all the shares under the sale agreement, and the transfer took place only at the time when the full consideration was paid for the concerned shareholding. The insura....