https://www.taxtmi.com/caselaws?id=6765 Arrear dividends declared before a share purchase remained the legal entitlement of the registered shareholder, so the purchaser did not acquire a direct right to them by buying the shares. The amount received under the vendor's contractual promise to pass on those arrears formed part of the bargain price structure rather than income from shares or from an adventure in the nature of trade. A single planned transaction was insufficient to characterise the receipt as trading profit. The sum was therefore not taxable as business income or dividend income in the purchaser's hands. en-us Wed, 06 Jan 1965 00:00:00 +0530 Mon, 02 Feb 2009 09:08:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6765 Arrear dividends declared before a share purchase remained the legal entitlement of the registered shareholder, so the purchaser did not acquire a direct right to them by buying the shares. The amount received under the vendor's contractual promise to pass on those arrears formed part of the bargain price structure rather than income from shares or from an adventure in the nature of trade. A single planned transaction was insufficient to characterise the receipt as trading profit. The sum was therefore not taxable as business income or dividend income in the purchaser's hands. Case-Laws Income Tax Wed, 06 Jan 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6765