Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Income Tax Act Table A Clauses 85 & 86 1964 Companies Act: S. 205 1961 Finance Act |
Content Type | Text |
Resource Type | Law Order |
Jurisdiction | India |
Act(s) Referred | Companies Act, 1956 (1 of 1956) Indian Income-tax Act, 1922 (11 of 1922) |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Income Tax Act, 1961/Finance Act, 1964 . Interim dividend-Nature of-Declaration of interim dividend by Board of Directors on 6.12. 1962 to be payable on 16. 1. 1963-Accounting year of Company being calendar year-Income Tax Officer reduced the rebate for the assessment year 1964-65 to the extent of interim dividend-Held, provisions of clause (c) of proviso 2(1) attracted-Income tax authorities were right in reducing the rebate for the assessment,year 1964-65-lnterim dividend cannot be construed as meaning declaration of dividend by Company-Nature of the interim dividend is such that it gives no right to shareholders to receive it merely on passing of resolution by Board of Directors whereas on a dividend being declared by the Company in General meeting, a vested right accrues to shareholdersJ. Dalmia v. Commissioner of Income Tax, Delhi, 53 I.T.R. 83, relied on. Companies Act, 1956S. 205, Table A, Clauses 85 and 86-Declaration of interim dividend by Board of Directors on 6. 12.1962 payable on 16. 1 .1963-Accounting year F of Company being Calender year-Held, where the Board of Director, and, not the company in general meeting, decides to pay interim dividend, the rebate will be withdrawn in the year of distribution of the interim dividend, there being no declaration by the company for payment thereof |
Judge | N/A |
Neutral Citation | 1998 INSC 35 |
Petitioner | The Commissioner Of Income Tax |
Respondent | M/s. Express News Papers Ltd. |
SCR | [1998] 1 S.C.R. 288 |
Judgement Date | 1998-01-21 |
Case Number | 2941 |
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