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PETITIONER: PROVAT KUMAR MITTER
Vs.
RESPONDENT: COMMISSIONER OF INCOME TAX,WEST BENGAL
DATE OF JUDGMENT: 08/12/1960
BENCH: DAS, S.K. BENCH: DAS, S.K. HIDAYATULLAH, M. SHAH, J.C.
CITATION: 1961 AIR 1019 1961 SCR (3) 37 CITATOR INFO : D 1961 SC1023 (7) RF 1961 SC1059 (6) D 1967 SC 383 (10)
ACT: Income Tax-Assignment by shareholder of right to dividend Liability to tax of such share-holder-Indian Income-tax Act, 1922 (11 of 1922), ss. 16(1)(c), 16(3).
HEADNOTE: The appellant who was the registered holder of 500 shares of a company executed a deed dated January 19, 1953, by which he assigned to his wife the right, title and interest to all dividends and sums of money which might be declared or might become due on account or in respect of those shares for the term of her natural life. During the accounting year which ended on March 31, 1953, the dividend declared on the shares amounted to Rs. 12,000, and in assessing the appellant for the assessment year 1953-54 the Income-tax Officer included the said sum in his income under s. 16(i)(c) and s. 16(3) of the Indian Income-tax Act, 1922. The appellant claimed that since the settlement was for the lifetime of his wife, the third proviso to s. 16(i)(c) applied and the dividend which his wife received could not be deemed to be his income under s. 16(i)(c), and that s. 16(3) was not applicable because ...