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1962 (4) TMI 7 - SC - Income TaxWhether it was competent to the company by a subsequent resolution to reverse an earlier resolution declaring the dividend? Held that:- Payment made as dividend by a company to its shareholders does not lose that character merely because it is paid out of capital. Under the Income-tax Act, liability to pay tax attaches as soon as dividend is paid, credited or distributed or is so declared. The Act does not contemplate an enquiry whether the dividend is properly paid, credited or distributed before liability to pay the tax attaches thereto. The answer to the contention for reasons already set out by us must be in the negative. Appeal dismissed.
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