Supreme Court of India · 1966-02-10
KISHANCHAND LUNIDASINGH BAJAJ vs COMMISSIONER OF INCOME-TAX, MYSORE
- Citation / case number
- SC 1965/24
- Court
- Supreme Court of India
- Petitioner
- KISHANCHAND LUNIDASINGH BAJAJ
- Respondent
- COMMISSIONER OF INCOME-TAX, MYSORE
- Author
- GAJENDRAGADKAR, P.B. (),WANCHOO, K.N.,SHAHC.,SIKRI, S.M.,RAMASWAMI, V.
- Bench
- GAJENDRAGADKAR, P.B. (CJ),WANCHOO, K.N.,SHAH, J.C.,SIKRI, S.M.,RAMASWAMI, V.
Judgment text excerpt
The Supreme Court held that under Section 16(2) of the Indian Income-tax Act, 1922, the registered shareholder is liable for tax on dividends, regardless of the real ownership of the shares. The Court clarified that the income from dividends is chargeable to tax in the hands of the registered shareholder, as the company recognizes only the registered owner for dividend payments. The appeal was dismissed, affirming that the Hindu undivided family was not liable for the tax on dividends received by B as the registered shareholder.