Law: Income Tax Act, 1922

Section: 41(2)

Section 166, read with section 2(22) of the Income-tax, Act 1961 [Corresponding to section 41(2), read with section 2(6A), of the Indian Income-tax Act, 1922] - Representative assessee - Direct assessment - Assessment years 1955-56 and 1956-57 - Assessee who was beneficiary under trust and was entitled to receive interest, dividend and income from moiety of trust properties, was assessed to tax for assessment year 1955-56 under section 41(2) on amount received by trustees in respect of certain shares held in certain company representing accumulated profits of six previous years - Said amount was included in total amount received from company in respect of shares when said company went into liquidation treating it as deemed dividend - Whether although sum in question was deemed dividend within meaning of section 2(6A)(c) and, therefore, income but, could not be regarded as income, profits or gains receivable by trustees on behalf of assessee and, hence, same could not be assessed under section 41(2) in hands of assessee - Held, yes Section 166 of the Income-tax, Act 1961 [Corresponding to section 41(2) of the Indian Income-tax Act, 1922] - Representative assessee - Direct assessment - Assessment year 1956-57 - Assessee, under will executed by his grandmother, was entitled to receive income of certain properties held in trust by trustees who had power to convert properties into cash and invest proceeds in investments specified in will and to vary investments - Trustees sold said properties and invested proceeds in shares, etc. - In account year relevant to assessment year 1956-57 trustees sold some of shares which resulted in surplus which was included in assessee's assessment - Whether said surplus was accretion to corpus of trust which trustees were bound to reinvest and, hence, it could not be said to be income receivable on behalf of assessee and could not be assessed in his hands under section 41(2) - Held, yes FACTS The assessee was a beneficiary under the will and also under a trust deed executed by Lady W, who died on the 14-4-1930. Under clause (3) of the trust deed executed on 28-3-1928, interest, dividends and income from a moiety of the trust property…

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