Supreme Court of India

Messrs. Dhandhania Kedia & Co. v. The Commissioner of Income-tax

Neutral citation
Reported as [1959] SUPP. 1 S.C.R. 204
Bench T.L. Venkatarama Aiyyar J.
Decided 17 October 1958

INSC stands for INDIAN SUPREME COURT. A neutral citation scheme assigned by the Court itself, so a judgment can be cited without depending on a commercial law reporter. INSC is the neutral citation scheme assigned by the Supreme Court, so a judgment can be cited without depending on a commercial law reporter.

5 Supreme Court benches have cited this judgment.

What the Court ordered

We hold that the sum of Rs. 26,000 received by the appellant_on April 22, 1950, was divi­ dend as defined in s. 2(6A) (c) of the Act and is charge­ able to tax.

Judgment, page 10

From the headnote

Income-tax-Dividend, tax on-Distribution of accumulated profits of previous years-" Previous years", meaning of-Indian Income-tax Act, I922 (XI of I922), ss. 2(6A)(c) and z(II). The appellant, a resident of the once independent State of Udaipur, held 266 shares in the Mewar Industries Ltd.. a company registered in that State. There was no law in the State of Udaipur imposing tax on income and it was on April Il 195.0, that for the first time the residents of Rajasthan, in which the State had merged, became liable to pay such a tax. On January 18, 1950, the Company went into liquidation and on

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