https://www.taxtmi.com/caselaws?id=6581 The ruling authority concluded that the allotment of bonus redeemable preference shares to existing equity shareholders did not result in income accrual to non-resident equity shareholders at that stage. Therefore, the company was not required to deduct tax at source. The ruling was pronounced on April 4th, 2005, under section 245Q(1) of the Income-tax Act, 1961, emphasizing that issuing bonus preference shares did not constitute dividend distribution until the shares were redeemed, leading to the release of assets and tax obligations. en-us Mon, 04 Apr 2005 00:00:00 +0530 Thu, 15 Jan 2009 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6581 The ruling authority concluded that the allotment of bonus redeemable preference shares to existing equity shareholders did not result in income accrual to non-resident equity shareholders at that stage. Therefore, the company was not required to deduct tax at source. The ruling was pronounced on April 4th, 2005, under section 245Q(1) of the Income-tax Act, 1961, emphasizing that issuing bonus preference shares did not constitute dividend distribution until the shares were redeemed, leading to the release of assets and tax obligations. Case-Laws Income Tax Mon, 04 Apr 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6581