JAGAT NARAYAN, C.J. - (1.) THIS is a reference under Section 66(1) of the Indian Income -tax Act, 1922.
(2.) THE assessee is a Hindu undivided family. The assessment year is 1950 -51 and the relevant accounting year the assessee was a share -holder of the Associated Stone Industries (Kotah) Ltd. Ramganjmandi, (hers inafter referred to as the Company). The assessee received from the Company a divided of Rs. 1,73,839/ - declared by the said Company on 29.9.1949 out of its profits for the year ended 30.9,49. The assessee had income from other sources also. In the course fo assessment for the year the Income -tax Officer included the said dividend income received by the assessee and subjected it to tax after giving the appropriate rebate under the Part B States (Txation Concession) Order, 1960 (hereinafter referred to as the Concession Order), The Income -tax Officer also grossed up the said dividend at the concessional rate of 16 pies per rupee. Under para 12 of the said order only 50% of the dividend was grossed and taxed as the income of the Company out of which the divined was declared for the period 1.10.48 to 30.9.49. The Income -Tax Officer pasted his order on 27.3.53,
(3.) THE assessee preferred an appeal to the Appellate Assistant Commissioner, who by his order dated 15th October, 1954, confirmed the order of the Income -tax Officer.;