Dividend paid or deemed to have been paid by company out of its 'tax holiday' profits - Relief denied to shareholders in the absence of proper certificate re. percentage of tax-free profits - Whether relief under the section should be allowed on production of necessary certificate after expiry of time limit specified under section 154(7) - Order under section 119(2)(b)

Shareholders can now apply for tax relief on 'tax holiday' dividends even after the deadline if they provide certificates.

Shareholders who receive dividends from companies utilizing 'tax holiday' profits were initially denied tax relief under section 80K due to the absence of certificates indicating the percentage of tax-free profits. The Board has decided that Income-tax Officers should accept applications for relief, even if filed after the deadline, provided they are supported by the necessary certificates. This decision aims to rectify the hardship caused by the previous requirement. Additionally, any pending appeals or references on this matter should be withdrawn. This directive is issued under the authority of section 119(2)(b).