lbc appellant was a 5hareholder in a company in which 'the pub'io v;cre not suhstanrially interested' \li'ithin lhe meaning of s. 23A of the Income-tax • .\ct, 1922. At the company's gert.:ral meeting held on April 22, 1939, the con1pany failed to declare dividend to lhc extent of 60'}& of it'i a'\s.cssable income of its pNvious year as reduced hy the amount of income-tax and super-tax payahlc in rc'ipect thereof. By order dated November 18, 1940 the Income-tax Officer, acting under !-.. 2A( 1). ordered that a certain sum shall be deemed to have hcen distributed a'\ dividend amongst the shareholders of the company as at the date of its general meeting. On December 12, 1941 the Income-tax ()fficcr dclcrminc<l the shares of the different shareholders but did not include the proportionate shares of the deemed income in the individual ;:1s.'\es-.ments Of the shareholders for the asscs.<ment year 1940-41. On April 24, 1942. the company in a general meeting resolved to make a pa'rt of its rcscrve available as dividend to the shareholders and actually distributed the amount by crediting the acrount of each shareholder v.·ith his respective share therein. In proceedings for as<ies:.mcnt of the income of the appt·llant for the assessment year 1943-44, the Incoine-tax Officer brought to tax the amount distributed and credited to the appellant, as amount liable to be taxed in that year. the eo~~f":n':· triu~~~rrit~e c r~~~ ~~~f·t~:l~<>st~~~ ment year 19404 I. but not having been assessed to rax in that year the appellant's shar-: in the amount actually distributed \Vas liahle to be asses_<;;ed in the assessment year 1943-44.
