Venkatasubba Rao, J.

1. The question that arises is, whether the dividends received by a person from a company can be treated as a source of income for the purpose of levying the profession-tax under the Madras District Municipalities Act. For the petitioner, it is contended that to levy a tax on a share-holder would amount to " taxing twice over", the company having been already assessed in respect of its profits which in effect belong to the share-holders. The Income Tax Acts, as is pointed out in Purshottamdas Harkisondas v. The Central India Spinning, Weaving and Manufacturing Co. Ltd. I.L.R.(1917) 42 Bom. 579 proceed upon the footing that the entire profits are subject to the common burden of Income Tax, which in truth is paid by the share-holders, although the payment is made by the company. That this is the true view, appears also from the following passage in the judgment of Romer, L.J.:

If such a company as we have to deal with pays Income Tax on its profits, the Income Tax, as has been pointed out, is payable out of the profits, and is part of the profits; and if the profits, after deducting the Income Tax, have subsequently to be distributed amongst the members of