https://www.taxtmi.com/caselaws?id=185558 Redemption of redeemable preference shares issued out of capitalised accumulated profits was treated as a fresh distribution of accumulated profits because the repayment in cash released company assets; the redemption amount was therefore taxable as dividend under section 2(6A)(a) of the Income-tax Act, 1922. The earlier capitalisation of profits did not prevent the later charge on redemption. The price paid to acquire the shares was held not deductible in computing dividend income, as it was incurred before the relevant year and was capital expenditure, not revenue expenditure. en-us Sat, 12 Sep 1964 00:00:00 +0530 Fri, 19 Aug 2016 17:13:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=185558 Redemption of redeemable preference shares issued out of capitalised accumulated profits was treated as a fresh distribution of accumulated profits because the repayment in cash released company assets; the redemption amount was therefore taxable as dividend under section 2(6A)(a) of the Income-tax Act, 1922. The earlier capitalisation of profits did not prevent the later charge on redemption. The price paid to acquire the shares was held not deductible in computing dividend income, as it was incurred before the relevant year and was capital expenditure, not revenue expenditure. Case-Laws Income Tax Sat, 12 Sep 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=185558