https://www.taxtmi.com/caselaws?id=6997 Dividends declared and paid on cumulative preference shares were treated as exempt under section 19(4) of the Finance Act, 1959, where the payments on or before 30 June 1960 related to arrears of earlier years. The article notes that, although company law may regard a later declaration as creating a debt in that year, the phrase "in respect of any previous year" was read broadly enough to include dividends referable to unpaid earlier-year amounts. On that basis, the exemption applied and no obligation arose to deduct tax under sections 18(3D) and 18(3E); the withholding order was therefore unsustainable. 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 on cumulative preference shares were treated as exempt under section 19(4) of the Finance Act, 1959, where the payments on or before 30 June 1960 related to arrears of earlier years. The article notes that, although company law may regard a later declaration as creating a debt in that year, the phrase "in respect of any previous year" was read broadly enough to include dividends referable to unpaid earlier-year amounts. On that basis, the exemption applied and no obligation arose to deduct tax under sections 18(3D) and 18(3E); the withholding order was therefore unsustainable. Case-Laws Income Tax Sat, 07 Oct 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6997