https://www.taxtmi.com/caselaws?id=7573 Dividend in kind cannot be revalued at market price to tax a shareholder on income exceeding the value declared and adopted by the distributing company. Where accumulated profits were distributed partly through shares and partly in cash, and the shares were valued consistently in the distributing company's hands, a later higher market value does not increase the shareholder's dividend income. The shareholder is taxable only on the dividend actually declared and valued, unless material establishes collusion or fraud. The proposed assessment of additional dividend income based on notional market revaluation was therefore unsustainable. en-us Wed, 15 Nov 1967 00:00:00 +0530 Mon, 02 Mar 2009 13:38:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7573 Dividend in kind cannot be revalued at market price to tax a shareholder on income exceeding the value declared and adopted by the distributing company. Where accumulated profits were distributed partly through shares and partly in cash, and the shares were valued consistently in the distributing company's hands, a later higher market value does not increase the shareholder's dividend income. The shareholder is taxable only on the dividend actually declared and valued, unless material establishes collusion or fraud. The proposed assessment of additional dividend income based on notional market revaluation was therefore unsustainable. Case-Laws Income Tax Wed, 15 Nov 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7573