https://www.taxtmi.com/caselaws?id=6206 On liquidation, a distribution is taxable as dividend only if it is attributable to accumulated profits within section 2(6A)(c) of the Income-tax Act, 1922. Surplus assets received by shareholders are treated as capital in liquidation, and the statutory concept of accumulated profits does not extend to current profits earned in the year of liquidation where they are not brought forward from earlier years. Because the amount distributed represented current-year profits rather than accumulated profits, it was not chargeable as dividend in the shareholders' hands. en-us Fri, 24 Apr 1970 00:00:00 +0530 Wed, 03 Dec 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6206 On liquidation, a distribution is taxable as dividend only if it is attributable to accumulated profits within section 2(6A)(c) of the Income-tax Act, 1922. Surplus assets received by shareholders are treated as capital in liquidation, and the statutory concept of accumulated profits does not extend to current profits earned in the year of liquidation where they are not brought forward from earlier years. Because the amount distributed represented current-year profits rather than accumulated profits, it was not chargeable as dividend in the shareholders' hands. Case-Laws Income Tax Fri, 24 Apr 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6206