Shah, J. - (1.) The appellant which is a Hindu undivided family was the registered holder of 1500 shares of M/s Govan Bros. (Rampur) Ltd. in the year of account October 1, 1950 to September 30, 1951. Pursuant to a resolution passed by the board of directors of M/s. Govan Bros. (Rampur) Ltd. - hereinafter called 'Govan Bros'. - at a meeting held on August 30, 1950, the appellant received a dividend warrant dated December 28, 1950 for Rs. 4,12,500/- being interim dividend in respect of its shareholding in Govan Bros. This amount was brought to tax with the other income of the appellant in the assessment year 1952-53 by the Revenue authorities, after rejecting the objection of the appellant that it represented income for the assessment year 1951-52.
(2.) At the instance of the appellant the Appellate Tribunal drew up a statement of the case and referred the question set out herein below to the High Court of Punjab under S. 66 (1) of the Indian Income-tax Act: "Whether on a true interpretation of Article 95 of the First Schedule to the Indian Companies Act, 1913, the dividend of Rs. 4,12,500/- was liable to be included in the assessment year 1952-53." The High Court recorded an answer to the question in the affirmative. Against the order of the High Court, this appeal is preferred by the appellant with certificate granted by the High Court.
(3.) Even though the question was framed as if Article 95 of the First Schedule to the Indian Companies Act, 1913, applies to Govan Bros., it is common ground that the company was registered under the Companies Act of the former Rampur State, and it had adopted special Article of Association in Supersession of Table A of the Companies Act. The relevant Articles of Govan Bros. dealing with declaration or payment of final and interim dividends were Articles 73 and 74. The High Court therefore proceeded to deal with the question on the footing that it was, by the question referred, called upon to interpret Article 74 of the Articles of Association of Govan Bros. It is common ground between the appellant and the Revenue that the provisions of the Companies Act of the former Rampur State were in terms identical with the provisions of the Indian Companies Act, 1913;