Mrs. Kusumben D. Mahadevia v. The Commissioner Of Income-Tax, Bombay

Section: CONCLUSION 3 S.C.R. SUPREME COURT REPORTS MRS. KUSUMBEN D. MAHADEVIA v. THE COMMISSIONER OF INCOME-TAX, BOMBAY. (S. K. D.As, J. L. KAPUR and M. HIDAY.A.TULL.AH, JJ.) Income-tax-Reference-High Court's jurisdiction-If can decide a question not decided by the Tribunal-Indian Income-tax Act, I922 (XI of I922), s. 66-The States (Taxation Concessions) Order, I949, para. 4. The appellant was a shareholder of a company known as Mafatlal Gagalbhai and Co., Ltd. The Company with its register-ed office at Bombay was at all material times resident in British India. It was also doing business in the former Baroda State and used to keep its profits derived in that State with Mafatlal Gagalbhai Investment Corporation, Navsari. In the year 1949 Mafatlal Gagalbhai and Co. Ltd. declared dividends out of profits which had accrued partly in British India and partly in the Indian State. , The appellant was assessed to income-tax on the dividends earned by her. She did not bring those dividends into British India and claimed the benefit' of para. 4 of the Merged States (Taxation Concessions) Order. The Tribunal held that the income did not accrue to the appellant in the Baroda State but it did not decide the question whether she was entitled to the bene:fits of the Taxation Concessions Order. The High Court on a;reference to it held that para. 4 of the Taxation Concessions Order did not apply to the assessee but it did not decide the other ques-tion as to where the income had accrued to the assessee. On appeal· by special leave the appellant contended, inter alia, that since the Tribunal had not gone into the question of the applicabi-lity to the assessee of the Concessions Order and had not express-ed any opinion thereon, the High Court could m>t raise the ques-tion on its own and decide it : ' Held, that the High Court exceeded its jurisdiction in going outside the point of law decided by the Tribunal and deciding a different point of law. Section 66 of the Income-tax Act which confers jurisdiction upon the High Court only permits a reference of a question of law arising out of the order of the Tribunal. It does not confer juris-diction on the High Court to decide a different question of law not arising out of such order. New f ehangir Vakil Mills Ltd. v. Commissioner of Income-tax, [1959] 37 I.T.R. II, .Scindia Steam Navigation Co. Ltd. v. Commis-sioner of Income-tax, [1954] 26 I.T.R. 686, Commissioner of Income-tax v. Breach Candy Swimming Bath Trust, [1955] 27 I.T.R. 279 and Ismailia Grain Merchants Association v. Commissioner of Income-tax, [1957] 31 I.T.R. 433, distinguished, Mash Trading Co. v. Commissioner of Income-taxi [1956] 30 I.T.R. 388, considered. March 30. Mrs. Kusumben D. Mahadevia (hereinafter referred to as the assessee) who has filed this appeal, was, at all material times, residing in Bombay. She was a shareholder, holding 760 shares of Mafatlal Gagal-bhai & Co., Ltd., Bombay. For the assessment year 1950-51 (the previous year being the calendar year 1949), she was assessed to income-tax on a total income of Rs. 1,50,765 which included a grossed-up dividend income of Rs. 1,47,026. In the latter income was included a sum of Rs. 47,120 being the dividends declared by Mafatlal Gagalbhai & Co., Ltd., Bombay. Mafatlal Gagalbhai & Co., Ltd., is a private limited Company with its registered office at Bombay. It was, at all mater-ial times, 'resident and ordinarily resident' in British India. It was also doing business in the former Baroda State, and used to keep its profits derived in that State with Mafatlal Gagalbhai Invest-ment Corporation, Navsari. In the year 1949 Mafat-lal Gagalbhai & Co., Ltd., declared dividends out of these accumulated profits by three resolutions, which are reproduced : 25-3-1949. "That a further dividend of Rs. 17 per ordinary share free of income-tax for the year 1947 be and is hereby declared absorbing Rs. 4,29,250 3 S.O.R. SUPREME COURT REPORTS 419 417 418 [1960] 25-3-1949। 419 24-9-1949। 1948 1949 "। 24-9-1949 " S.C.R. 417 1960March, 30 1960 419 420 1960 (NRTNINS FASTA MNTONT IH. CD. WIA, COT. AA. DIA G42 IN. CQUPATGSTR, ) SY PIN-DNA-(APUAT--DAPOT IMOMT-WA GED (HHS AW ZAM AN Hae (Wo AN-z-SOMA SVP Y-ONA MW2Y SH22 (SH22 WNIT XI),WA YY-W CLOW (PT WO) AGT SH8S, WIMP8 BUTAMTHal WPM WATS BIS cprenta FNC ACW Afafow SSC CPPS CVATACRIPOTAfaccia | Carcace frat BREA WS CPPS WS Ne fale Srdted Sh feet! SIC Area SCAM ATS |BIA PAV 4le CHS ACG WPOley MATS BACH OEM PCACAIN, TOHMAA ACA Ol YASH! AAISH8h WIC WPoOo#+la Wiese Bre cre ACH Brew fatter WMOS 442 Be PPS VITsly ACGu |BAS ACSA NCAT CAH TSMAY CMIN HCA! VUAeTHrald WAT GAPS WHIT Pal ACASt Gra Qa VSTom! Gifoty All wos OZ Aone Bicrai Gao WITOoA AAAS 8 -4q Haar wie prafacciaANG (PA BS) BCH | VISIT Acar CA BUT ACAM AoGS SANATHrala DCB GI VAP wed feta paBrod BIeneia Haar MAA Ufsprat fear 42 AcAe Brars cvafyl 4 FAIA BAcHIG: 4A CAVICATH ATRACY CYT Pa BG BSicad Aralare 8 fAetaresiala Tay ACIS A fs AD frefacveaprata PCY UN CHITACM BIZ ol Bay aca rare crates face Ureyafod Wecy Sica Way SMActarat She MeafaccryCY, ARE VAD BS MN Wouaspala PCY ACG ACY AA Ae OF ICA CHICA Worwyo)ADF PCA, BAP fly CATH AY Ory Jae Frans face Acafey: | OldAANA BO PN PATA WIPA BISA GY Mal VW BScpiocp Axford ANN Ped SHI DSPs BIA WeerOUtAS BAA ABI AAA CAVICATHA SPAS CHA! JZ AATATA OIC WUT OHSS AW VOM BUSA forary Pras CAS J2four a BScprbcs CHT ATI 1960-3-417-423 1 നിരാകരണപതം(