Dividend on distribution of assets follows accumulated profits and market value rules under the income-tax framework. Dividend treatment extends to any distribution by a company of accumulated profits, whether capitalised or not, where the distribution involves release to shareholders of all or any part of the company's assets. Accumulated profits include all profits of the company up to the date of distribution or payment. Where assets are distributed under the relevant dividend-deeming provisions, the market value of the asset on the date of distribution is to be taken for computing the dividend, and the note states the related tax and exemption treatment for such dividend.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Dividend on distribution of assets follows accumulated profits and market value rules under the income-tax framework.
Dividend treatment extends to any distribution by a company of accumulated profits, whether capitalised or not, where the distribution involves release to shareholders of all or any part of the company's assets. Accumulated profits include all profits of the company up to the date of distribution or payment. Where assets are distributed under the relevant dividend-deeming provisions, the market value of the asset on the date of distribution is to be taken for computing the dividend, and the note states the related tax and exemption treatment for such dividend.
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