https://www.taxtmi.com/caselaws?id=98103 Interim dividend declared by directors under the company's articles was taxable only when actually paid, credited or distributed under section 16(2) of the Indian Income-tax Act, not merely when the resolution was passed. A declaration by shareholders in general meeting creates an enforceable debt, but a directors' resolution for interim dividend does not create the same obligation because it may be rescinded before payment. The articles authorising directors to declare interim dividend did not change that position. In the absence of actual payment, credit, distribution, or a statutory fiction treating declaration as payment, the amount could not be taxed in the earlier assessment year. en-us Wed, 01 Apr 1964 00:00:00 +0530 Mon, 12 Feb 2018 14:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=98103 Interim dividend declared by directors under the company's articles was taxable only when actually paid, credited or distributed under section 16(2) of the Indian Income-tax Act, not merely when the resolution was passed. A declaration by shareholders in general meeting creates an enforceable debt, but a directors' resolution for interim dividend does not create the same obligation because it may be rescinded before payment. The articles authorising directors to declare interim dividend did not change that position. In the absence of actual payment, credit, distribution, or a statutory fiction treating declaration as payment, the amount could not be taxed in the earlier assessment year. Case-Laws Income Tax Wed, 01 Apr 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98103