Law:

Section:

Section 235 of the Income-tax Act, 1961 (Corresponding to section 49B of the Indian Income-tax Act, 1922 - Deductions - Agricultural dividends - Assessment year 1960-61 - Whether conditions necessary for application of section 49B are only that an assessee should have received dividend income and that dividend income came from a company assessed to agricultural income-tax - Held, yes - Whether, further, if tax is payable by assessee on income received by way of dividend from such a company, he is entitled to relief under section 49B - Held, yes FACTS For the relevant assessment year, the assessee-company received dividend income from certain plantation companies assessed to agricultural income-tax and the total income assessable to tax, after deducting the business loss, was only Rs. 21,750 on which the income-tax and super-tax payable was Rs. 9,787.50. The assessee claimed a deduction under section 49B of 20 per cent of the amount representing agricultural portion of dividend, from the tax payable. The Tribunal upheld the claim. On reference : HELD The quantum of the relief will have to be determined with reference to the provisions in section 49B and those provisions do not relate the quantum of the relief to the quantum of the tax payable by an assessee. The conditions necessary for the application of the section 49B are only that an assessee should have received dividend income and that that dividend income came from a company which was assessed to agricultural income-tax under the Agricultural Income-tax Act applicable to the case. If these two conditions are satisfied, section 49B is attracted and if further tax was payable by the assessee on income received by the assessee by way of dividend from such a company, he is entitled to relief under section 49B. In the instant case, the tax that had been computed as payable by the assessee apart from the deduction made under section 49B was a tax attributable to the dividend received from the company assessed to agricultural income-tax. In fact, the tax was exclusively relating to that dividend because the assessee had no other income and the tax on the dividend income alone. Thus, the assessee, as a…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492