https://www.taxtmi.com/caselaws?id=6997 Dividends declared and paid in 1960 on cumulative preference shares were exempt from tax deduction where they were referable to unpaid dividends for previous years relevant to assessment years before 1960-61. Section 19(4) of the Finance Act, 1959 applied to dividends declared or payable by 30 June 1960 in respect of those earlier years. Although a later dividend declaration creates a debt in the declaration year under company law, that timing did not displace the broader statutory phrase "in respect of any previous year". Resolutions, accounts and surrounding circumstances established that the payments related to earlier dividend arrears; consequently, no deduction obligation arose under the Indian Income-tax Act, 1922. en-us Sat, 07 Oct 1967 00:00:00 +0530 Sat, 07 Feb 2009 18:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6997 Dividends declared and paid in 1960 on cumulative preference shares were exempt from tax deduction where they were referable to unpaid dividends for previous years relevant to assessment years before 1960-61. Section 19(4) of the Finance Act, 1959 applied to dividends declared or payable by 30 June 1960 in respect of those earlier years. Although a later dividend declaration creates a debt in the declaration year under company law, that timing did not displace the broader statutory phrase "in respect of any previous year". Resolutions, accounts and surrounding circumstances established that the payments related to earlier dividend arrears; consequently, no deduction obligation arose under the Indian Income-tax Act, 1922. Case-Laws Income Tax Sat, 07 Oct 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6997