Section 107A - Omitted

Reduction of minimum distribution: Board may permit smaller statutory dividend subject to procedural application and limits.

Companies unable or inadvisable to declare larger dividends could apply to the Board, in prescribed form and with a fee, for reduction of the statutory minimum distribution. The Board, after hearing, could reduce the required distribution by up to twenty per cent of the statutory percentage of distributable income and set the period for payment. While an application was pending the Income-tax Officer was to defer orders under the minimum-distribution provision; failure to comply with the Board's direction restored the Officer's power as if no reduction had been granted. The Board's decisions were final and appeal was barred where the Board had decided.