Law:

Section:

Section 199 of the Income-tax Act, 1961 read with rule 30A of the Income-tax Rules 1962 - Deduction of tax at source - Credit for tax deducted - Assessment year 1968-69 - Whether to be entitled to benefit of section199, assessee's name must find place in register of shareholders - Held, yes - Whether where assessee was not registered shareholder and shares were held by trust, assessee was not entitled to benefit of credit for tax deducted at source on dividends derived from those shares - Held, yes FACTS The assessee was assessed through the trustees of the Nizam's Family Trust on the income from dividends in respect of certain shares in some companies. The shares were all held in the name of the executive officer of the trust. The ITO did not give credit for the tax deducted at source on the ground that rule 30A did not cover the case. But on appeal, the AAC directed the ITO to give credit to the extent of the amount of tax deducted at source on the dividend income. The Tribunal dismissed the revenue's appeal. On reference : HELD Admittedly, the assessee was not a registered shareholder. Her name did not find place in the register of shareholders. The registered shareholder was the attorney of the Nizam. There was no merit in the argument that the beneficiary, viz., the assessee, could not be taxed in respect of the dividends received by her, all because the shares were registered in the name of Attorney of Nizam. The fact that the Nizam was a sovereign ruler or had enjoyed special privileges and prerogatives did not at all help the case of the assessee. To be entitled to the benefit of section 199, the assessee's name must find place in the register of shareholders. In the absence of her being such a shareholder, she was not entitled to the relief claimed. Admittedly, no certificate was filed by the assessee as required by section 203 The Certificate that was filed was obtained by the attorney of Nizam in his name and filing of such a certificate obtained by a shareholder would not enure to the benefit of the assessee who was not the registered shareholder. Therefore, the assessee should not be given credit for the tax deducted at source on dividends derived…

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