https://www.taxtmi.com/caselaws?id=152231 Section 35(10) of the Indian Income-tax Act, 1922 created a deeming fiction allowing rebate withdrawal where profits on which rebate had been allowed were later used to declare dividends. The majority held that, although the Finance Act, 1956 gave the provision express retrospective effect to a limited extent, it could not be stretched to cover dividend declarations made before 1 April 1956 because the language did not clearly require application to completed transactions and the provision affected vested rights. On that view, rebate could not be withdrawn for pre-commencement dividends. The dissent read the words "subsequently" and "in any year" as sufficient to cover such dividends. en-us Wed, 14 Nov 1962 00:00:00 +0530 Wed, 07 Aug 2013 10:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=152231 Section 35(10) of the Indian Income-tax Act, 1922 created a deeming fiction allowing rebate withdrawal where profits on which rebate had been allowed were later used to declare dividends. The majority held that, although the Finance Act, 1956 gave the provision express retrospective effect to a limited extent, it could not be stretched to cover dividend declarations made before 1 April 1956 because the language did not clearly require application to completed transactions and the provision affected vested rights. On that view, rebate could not be withdrawn for pre-commencement dividends. The dissent read the words "subsequently" and "in any year" as sufficient to cover such dividends. Case-Laws Income Tax Wed, 14 Nov 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=152231