1988 (12) TMI 136

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....ucted at source of Rs. 10,350 according to provisions of s. 237 of IT Act, 1961. (2) AAC erred in making certain incorrect, immaterial and/or irrelevant observations particularly in respect of the entire dividend income being taxed in the hands of the settlor and the refund should have been claimed by the settlor. (3) AAC failed to appreciate that the dividend income had been received by the t....

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....r the benefit of M/s Jaideep Investments & Trading Co. Pvt. Ltd. M/s Star Chemicals declared dividend of Rs. 45,000 on the above shares and on which the tax was deducted at source. The trustees of the trust claimed refund on the tax deducted at source, although the dividend income was assessed in the hands of the settlor. The ITO rejected the claim on the ground that the dividend income had been a....

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....ncome of the transferor and shall be included in his total income". In the present case, it is not disputed that the present trust was revocable trust as after 73 months, the settlor, and in the case of his death, his wife or eldest son had a right to revoke the trust. Consequently, the income of dividend, which was an asset allegedly transferred by the settlor, has to be assessed in his hands. ....