| Case ID |
1bb34822-fe31-4086-ba5e-a49f8e908f2d |
| Body |
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| Case Number |
IT REFERENCE No. 69 OF 1962 |
| Decision Date |
Sep 11, 1967 |
| Hearing Date |
|
| Decision |
The court held that the assessee was entitled to exemption from super-tax on the whole of the dividend income derived from any other company that had paid or would pay super-tax in respect of the profits out of which such dividends were paid. The Income-tax Officer was not entitled to deduct any loss or other expenses incurred by the company from the said amount. The case was decided in favor of the assessee. |
| Summary |
In the landmark case of IT Reference No. 69 of 1962, the Bombay High Court addressed the issue of super-tax exemption under the Income-tax Act, 1961. The case revolved around the interpretation of Notification No. 47 issued by the Governor-General-in-Council, which provided exemptions for investment trusts receiving dividends from companies that had already paid super-tax. The primary question was whether the exemption applied to the gross dividend income or whether it should be reduced by business losses incurred by the assessee. The court determined that the exemption applied to the entire dividend income received by the assessee, without deductions for business losses, thereby reinforcing the principle that expenses incurred for the business as a whole should not be allocated between taxable and non-taxable income. This case is significant for tax practitioners and businesses involved in investment activities, as it clarifies the treatment of dividend income for super-tax purposes. Keywords: super-tax exemption, Income-tax Act, dividend income, business expenses, investment trust. |
| Court |
Bombay High Court
|
| Entities Involved |
Industrial Investment Trust Co. Ltd.
|
| Judges |
KOTVAL, C.J.,
V.S. DESAI, J.
|
| Lawyers |
G.N. Joshi,
R.J. Joshi,
S.P. Mehta,
Dilip Dwarkadas
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
Industrial Investment Trust Co. Ltd.
|
| Citations |
1968 SLD 222,
(1968) 67 ITR 436
|
| Other Citations |
CIT v. Indian Bank Ltd. [1965] 56 ITR 77 (SC),
CIT v. South Indian Bank [1966] 59 ITR 763 (SC)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
4
|