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News Bulletinby Harish

Income accruing from assets for minor's benefit to be included in total income

Aassessee executed trust deeds. ITO included income arising from the trust properties in the assessee's income. Commissioner, u/s 263, directed that income of minor beneficiaries be also included in assessee's income. Tribunal and High Court rejected assessee's appeal. Supreme Court held that income accruing from assets settled by assessee upon trustees for benefit of his minor children was liable to be included in his total income u/s 64(v). -0 ...

Distribution of accumulated profits by company to its shareholders is dividend

The assessee-company held preference shares in a company, which had issued shares at a premium and kept premiums so received as capital reserve. Assessee was paid a dividend on the preference shares. ITO taxed the sum received as dividend u/s 2(6A). AAC held that said dividend was not taxable. Tribunal and High Court overruled AAC. Supreme Court upheld the High Court's order. -010753