1966 (9) TMI 45

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....mily of which the manager is Sarathy. There are in the family two other adult male members : Doraiswamy and Singharan. Sarathy holds 2,797 shares, Doraiswamy holds 100 shares and Singharan holds 100 shares in a limited company styled " The Chittoor Motor Transport Company (Private) Limited ". In this company the public are not substantially interested within the meaning of section 23A of the Incom....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... on diverse grounds, one of which was that the dividend income could not be assessed as the income of the assessee, " the Hindu undivided family not being the shareholder to whom the payment of advance or loan was made. " It was held by the Tribunal that the undivided family was not itself and could not be the registered shareholder of the company, and the individual members were the registered....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rd on behalf of the department in this case is that the Tribunal has not considered the applicability of section 2(6A)(e) of the Income-tax Act as amended in 1955. Its decision rested on the opinion that payments made to the beneficial owner, namely, the undivided joint Hindu family, are not tantamount to payments made to the shareholders in that the family was not the legal owner of the shares. T....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....cising advisory jurisdiction ; it is not sitting in appeal over the judgment of the Tribunal. If a question is raised by the Tribunal and referred to it, it is the function of the High Court to answer that question. The Tribunal will thereafter give effect to the opinion of the High Court. If the High Court finds that material facts are not stated in the statement of the case, or the Tribunal has ....