https://www.taxtmi.com/caselaws?id=69573 A payment made to foreign shareholders under Supreme Court directions was treated as the additional cost of acquiring the right shares, so it was capital expenditure and not deductible under section 57(iii) as expenditure incurred to earn dividend income. Dividend liability was held to arise only on declaration at the annual general meeting, not on the directors' recommendation or by relation back to the earlier year. Because the relevant annual general meetings were held in the previous year relevant to assessment year 1982-83, the dividends were taxable in that year and could not be spread over earlier assessment years. The lower authorities' tax treatment was sustained. en-us Thu, 31 Dec 1992 00:00:00 +0530 Thu, 07 Apr 2011 17:02:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=69573 A payment made to foreign shareholders under Supreme Court directions was treated as the additional cost of acquiring the right shares, so it was capital expenditure and not deductible under section 57(iii) as expenditure incurred to earn dividend income. Dividend liability was held to arise only on declaration at the annual general meeting, not on the directors' recommendation or by relation back to the earlier year. Because the relevant annual general meetings were held in the previous year relevant to assessment year 1982-83, the dividends were taxable in that year and could not be spread over earlier assessment years. The lower authorities' tax treatment was sustained. Case-Laws Income Tax Thu, 31 Dec 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=69573