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1964 (4) TMI 43 - SC - Income TaxWhether on a true interpretation of article 95 of the First Schedule to the Indian Companies Act, 1913, the dividend of ₹ 4,12,500 was liable to be included in the assessment year 1952-53? Held that:- If the mere declaration of dividend in general meeting of the company is not to be regarded as payment within the meaning of section 16(2), much less can it be said that a resolution declaring interim dividend—-which is capable of being rescinded by directors—operates as payment before the company has actually parted with the amount of dividend or discharged its obligation by some other act. The High Court was, therefore, right in recording an affirmative answer to the question propounded for the consideration of the court. Appeal dismissed.
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