https://www.taxtmi.com/caselaws?id=6209 The Supreme Court clarified that the mere declaration of dividends does not automatically trigger tax liability under section 16(2) of the Indian Income-tax Act. The Court emphasized that for dividends to be included in the total income of an assessee, they must be paid, credited, or distributed to the shareholder, with "paid" not necessarily requiring actual receipt but the company making the amount available to the entitled member. In the absence of evidence showing delivery of dividend warrants within the relevant accounting years, the Court dismissed the appeals, holding that the assessee could not be taxed on dividends received without proper documentation. en-us Tue, 28 Apr 1970 00:00:00 +0530 Wed, 03 Dec 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6209 The Supreme Court clarified that the mere declaration of dividends does not automatically trigger tax liability under section 16(2) of the Indian Income-tax Act. The Court emphasized that for dividends to be included in the total income of an assessee, they must be paid, credited, or distributed to the shareholder, with "paid" not necessarily requiring actual receipt but the company making the amount available to the entitled member. In the absence of evidence showing delivery of dividend warrants within the relevant accounting years, the Court dismissed the appeals, holding that the assessee could not be taxed on dividends received without proper documentation. Case-Laws Income Tax Tue, 28 Apr 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6209