PROVAT KUMAR MITTER vs COMMISSIONER OF INCOME TAX,WEST BENGAL

The Supreme Court held that the deed executed by the appellant assigning the right to dividends to his wife did not constitute a transfer of shares but rather a contract to transfer future dividends. The Court interpreted Sections 16(1)(c) and 16(3) of the Indian Income-tax Act, 1922, concluding that the income from dividends remained assessable to the appellant as he was the registered shareholder. The appeal was dismissed, affirming the High Court's decision to include the dividend amount in the appellant's income for tax assessment.