1990 (6) TMI 50

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....of an assessee to income-tax, the Income-tax Appellate Tribunal has referred the following question of law for the decision of this court : "Whether the Tribunal was right in law in holding that the provisions of section 2(6A)(e) of the Indian Income-tax Act, 1922, are applicable to the applicant's case and the advances made by the company to the applicant are assessable to tax as deemed divide....

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....A)(e) of the Indian Income-tax Act, 1922. But, in the appeals, the Commissioner of Income-tax (Appeals) held that the accumulated profits for the purpose of section 2(6A)(e) will only be Rs. 29,470, which represented the balance left in the profits at the close of the accounting period. The Revenue filed an appeal before the Appellate Tribunal and contended that the advances made during the earlie....

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.... the assessee-Hindu undivided family, that in the share register of the company the name of the shareholder was shown as the assessee-Hindu undivided family and that the dividends were also declared and distributed by the company to the assessee-Hindu undivided family. All along the line, the Hindu undivided family alone figured as a shareholder of the company and not the "karta" of the Hindu undi....

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....ded to this court. As a final fact-finding authority, the Appellate Tribunal has found that the shareholder of the company in the instant case was the Hindu undivided family-the assessee. The Hindu undivided family applied for allotment of shares and obtained dividends distributed by the company. For all intents and purposes, the shareholder was the Hindu undivided family. The loans and advances w....