BALAKRISHNA AYYAR, J.

Under section 66(1) of the Income-tax Act, the Appellate Tribunal of Bombay has referred the following question for the decision of this court

" Whether the assessment of the gross income from the investment in the aforesaid foreign company, before the deduction of the Ceylon income-tax thereon, as having accrued in full, is valid and proper ? " *

The material facts are these : V. Ramaswami Naidu, the kartha of a Hindu undivided family, held in the names of various members of the family 10, 208 shares of Rs. 10 each in Agravas Estates Ltd., a company incorporated in Ceylon. For purposes of the Indian Income-tax Act this company is a foreign company. G. V. Govindaswami Naidu, another assessee, and his wife, Govindammal, held 10, 000 shares in the same company between them. At a meeting of the general body of shareholders of this company held on November 11, 1950, certain dividends were declared and subsequently paid in the manner and to the extent indicated below

Gross Ceylon Dividend

dividends income-tax Net dividends certificates

deducted annexures

(1) (2) (3) (4) (5)

Rs. Rs. Rs

Ramaswami Naidu

(Hindu undivided

family) ... 26, 270 8, 024 18, 246 "A-1, A-2