...In re Sir Dinshaw Maneckjee Petit Bari AIR 1927 Bom. 371 MARTEN, C.J. – For the financial year 1925-26, the assessed Sir Dinshaw Petit has been assessed for super-tax on an aggregate income of Rs. 11,35,302 arising in the previous year. Of this sum he objects to Rs. 3,90,804 made up of two sums of Rs.2,76,800 and Rs. 1,14,004, the former of which arises from Government and other fixed interest bearing funds, and the latter from dividends in companies. Nothing appears to turn on this distinction, and I shall accordingly ignore it. Admittedly the assessed is the legal owner of most of these funds in the sense that they stand in his name and the interest and dividends are paid to him direct. Admittedly as regards the rest the apparent legal owners are his nominees and he receives the interest and dividends. Admittedly he has retained all the above interest and dividends and applied the same to his own use. Facts: The Facts stated are such that it appears that in the year 1921 the assessed formed four private companies which can be known as family companies for convenience of reference, although in fact no other member of his family took any direct benefit there under. The names of these four companies were Petit Limited: The Bombay Investment Company Limited: The Miscellaneous Investment Company: and the Safe Securities Limited: Each of these companies took over a particular block of investments belonging to the assessed. But, as the modus operandi was substantially...
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...In re Sir Dinshaw Maneckjee Petit Bari AIR 1927 Bom. 371 Marten, C.J. – For the financial year 1925-26, the assessee Sir Dinshaw Petit has been assessed for super-tax on an aggregate income of Rs. 11,35,302 arising in the previous year. Of this sum he objects to Rs. 3,90,804 made up of two sums of Rs.2,76,800 and Rs. 1,14,004, the former of which arises from Government and other fixed interest bearing funds, and the latter from dividends in companies. Nothing appears to turn on this distinction, and I shall accordingly ignore it. Admittedly the assessee is the legal owner of most of these funds in the sense that they stand in his name and the interest and dividends are paid to him direct. Admittedly as regards the rest the apparent legal owners are his nominees and he receives the interest and dividends. Admittedly he has retained all the above interest and dividends and applied the same to his own use. But he contends that he is only a trustee for certain family companies which he has formed: that the interest and dividends are theirs and not his: that he has credited them in account, and that though he has had the benefit of them in specie this is because the family companies have lent him these moneys at interest which he has credited to them in account although he has not actually paid the interest in cash. He says that the family companies are under no obligation to declare a dividend, and are entitled to lend out their income in this way, even though it results over...
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...Bombay High Court 1 1862 - 2012 A Journey of 150 Years through some Memorable Judgments Part 1 2 PREFACE A tiny kernel of an idea planted by Justice Mridula Bhatkar took root, and has resulted in a humble effort to present before you a compendium of the crux of some of the judgments of the Judges who have served the Bombay High Court since its inception in 1862.1 The initial idea was to document one judgment of the First Court from each year which was modified to include a judgment of the Bombay High Court of each year. I soon realized that it was too expansive an idea to merit a single judgment a year. I could collect and collate, as many as ten judgments which would qualify to show the development of the law we desired to portray. Having found too vast a number of such judgments, I had to settle at a more reasonable figure of about five judgments each year to showcase the progress this Court has made from its illustrious beginnings. Our Chief Justice Mohit Shah and our Justice Chandrachud wholeheartedly supported the idea to complement the Book published on this the sesquicentennial of our Court. As the number of Judges grew, fewer judgments of each Judge would be selected as illustrations. These judgments are not the only path-finding groundbreaking ones; they are also ones with simplicity and legal elegance. The number of judgments we settled upon just would not permit all deserving judgments to be compiled; only a few have been picked from each year as the first in...
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