The assessee claimed that out of the amounts set out in the table only Rs. 8,669/- for the year 1357 B.S., Rs. 20,469/- for the year 1358 B.S., and Rs. 21,822/- for the year 1359 B.S. were taxable as dividend, and the remaining amounts were not taxable, since they were declared out of capital gains of the ComF pany which comprised salami or premia received by it as consideration for grant of long-term mining and other leases and as compensation for compulsory acquisition of lands for public purposes. The Income-tax Officer brought the entire amount to tax declared as dividend for each of the three years in question and grossed up the amounts under s. 16(2) of the Income-tax G Act, 1922. In appeal, the Appellate Assistant Commissioner held that the entire amount for each year was income in the hands of the assessee, but only a part of it being dividend, within the meaning of s. 2(6A) of the Income-tax Act, 1922, was liable to be grossed up. In second appeal, the .~ ppellate Tribunal held that part of the amount distributed which was attributable H to salami received by the Company for the grant of longterm leases was not taxable as dividend, but as income of the assessee from "other sources".
