Judgment

HIDAYATULLAH, J. : This is an appeal with the special leave of this Court, and is directed against an order dated September 28, 1955, and a judgment dated February 20, 1956, of the High Court of Bombay. By the order, the High Court reframed a question referred to it by the Appellate Tribunal at Bombay, which it answered by its judgment.

2. Mrs. Kusumben D. Mahadevia (hereinafter referred to as the assessee) who has filed this appeal, was, at all material times, residing in Bombay. She was share-holder, holding 760 shares of Mafatlal Gagalbhai and Co., Ltd., Bombay. For the assessment year 1950-51 (the previous year being the calender year 1949), she was assessed to income-tax on a total income of Rs. 1,50,765/- which included a grossed-up dividend income of Rs. 1,47,026/-. In the latter income was included a sum of Rs. 47,120/- being the dividends declared by Mafatlal Gagalbhai and Company, Limited, Bombay, Mafatlal Gagalbhai and Company, Limited, is a private limited Company with its registered office at Bombay. It was, at all material times, resident and ordinarily resident in British India. It was also doing business in the former Baroda State, and used to keep its prof