Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Commissioner of Income-Tax Versus NMDC Ltd.

2016 (5) TMI 212 - TELANGANA AND ANDHRA PRADESH HIGH COURT

Levy of interest under section 115P - Tribunal held that dividend was declared for the assessment year 2003-04 on September 24, 2003, and tax was paid on October 3, 2003 which was within the time limit prescribed under section 115-P, hence no levy of interest - Held that:- The power of the Board of Directors of Company is only to declare interim dividend, whereas final dividend is to be declared only by the company in its general meeting. It is evident, therefore, that the power of the board of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

does not merit acceptance, as provision for payment of dividend does not automatically result in payment of dividend. It is only after the board of directors decide to recommend dividend, and the shareholders in the general meeting approve the recommendation of the board of directors, can dividend be held to have been declared. We find no error in the orders of the Tribunal, much less a substantial question of law, necessitating interference under section 260A of the Act. - Decided against reve .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hich relates to the assessment year 2003-04, I .T. T. A. No. 449 of 2014 is preferred against the order passed by the Tribunal in I. T. A. No. 293 of 2013 dated May 31, 2013 for the assessment year 2009-10. As the parties in both the appeals are common and the questions of law, which arise for consideration in both the appeals, are the same, both the appeals were heard together and are now being disposed of by a common order. 2. The question, which arises for consideration in these appeals, is r .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

2 treating the provision for payment of dividend as declaration of final dividend. On the ground that tax ought to have been remitted by 14th April (within 14 days of making the provision), and as tax was paid within 14 days of the declaration of dividend by the shareholders in the annual general meeting, interest was levied on belated payment of dividend tax. Aggrieved thereby, the assessee carried the matter in appeals before the Commissioner of Income-tax (Appeals). 3. Before the Commissioner .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the Act within the time limit prescribed under section 115-O of the Act, i.e., 14 days from the date of declaration of dividend, levy of interest was illegal. 4. In his order, the Commissioner (Appeals) held that finalisation of accounts cannot be equated to declaration of dividend; the latter is a specific decision to be taken by the board; dividend declaration is not automatic upon the presence of profits or reserves; this is a decision of the management; within 14 days of the annual general b .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ration of dividend is within the domain of the board of directors, and the management; the date of declaration of dividend is when it is actually declared by the board; and from the material on record it was clear that dividend was declared for the assessment year 2003-04 on September 24, 2003, and tax was paid on October 3, 2003 which was within the time limit prescribed under section 115-P of the Act. In I. T. A. No. 293 of 2013, the Tribunal followed its earlier order in I. T. A. No. 1774 of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

by way of dividend. Table-A of the First Schedule to the Companies Act contain the regulations for management of a company limited by shares. Regulation 85 thereunder stipulates that the company, in the general meeting, may declare dividends, but no dividend shall exceed the amount recommended by the board. A copy of the articles of association of the assessee has also been placed before us. Article 94 thereof provides that the company in the general meeting may declare a dividend to be paid to .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version