TaxTMI 
TaxTMI 
1931 (1) TMI 26
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....ered in London and having their head offices in London, and, I understand, also having their share register in London, though that fact is not stated. The third source is interest earned in British India and the fourth source is income accruing, arising and received outside British India. 3. The questions arise in respect of the second source, i.e., dividends paid in the United Kingdom by companies doing business in British India, but registered in London and having their head offices in London. The particular companies from which the income is derived are admitted to be companies within the definition contained in Section 2(6) of the Indian Income-tax Act. 4. The first question is, whether the assessee is liable to be assse....
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....ence between those rates, 6. There is no doubt that the present assessee, Major Goldie, is a shareholder in a company as defined by the Act who has received a dividend therefrom. Therefore, he is a person to whom, prima facie, the section applies. He has then got to satisfy the Income-tax Officer that the rate of income-tax applicable to the profits or gains of the company in question at the time of the declaration of such dividend (which was eighteen pies) is greater than the rate applicable to his total income of the year. 7. Now, in order to ascertain what his total income of the year is one has to look, first of all, at the definition in Section 2(16) of the Indian Income-tax Act, which says:-- 'total income....
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....n British India, would be included in the computation of total income under Section 16 So that for the purpose of ascertaining the total income under Section 48, you have to take the total world income, that is, in the case of Major Goldie, all the sums set out in paragraph 4 of the case, which I understand to be gross income before any deduction in respect of English or Indian Income-tax. As I understand from the case that this total world income would be liable to be assessed at the rate of twelve pies, and as the company has been assessed at the rate of eighteen pies, I think that the assessee is entitled to a refund at the rate of six pies. 9. With regard to the actual questions put to us, we are disposed to think that they are ....
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....hy, J. 14. I would answer the questions in the same sense. Major Goldie's income consists of four items. Of these the first was a dividend paid in India by a company registered in British India, and the second a dividend paid in the United Kingdom by a company doing business in British India but registered in London and having its head office in London. The third an item of Rs. 10 interest paid him in India and the last income accruing wholly outside British India. Two of these are items on which income-tax would ordinarily be assessable in India, and one of which is totally exempt from the tax. 15. The question before us is whether the second kind or (b) income derived from the dividend paid by the company registered in England b....