https://www.taxtmi.com/caselaws?id=7941 Interim dividend becomes a statutory distribution when the board's declaration is followed by appropriation through crediting shareholders' accounts, creating an enforceable obligation to pay. Under mercantile accounting, credits recording each shareholder's entitlement establish the company as debtor and the shareholders' right to sue for payment. Although an interim dividend may be reconsidered before appropriation or payment, that position does not apply once the liability has been acknowledged through account credits during the relevant accounting period. For rebate-reduction purposes under the Finance Act, 1956, this constitutes distribution to shareholders; the conclusion favours Revenue. en-us Wed, 14 Feb 1962 00:00:00 +0530 Tue, 24 Mar 2009 17:54:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7941 Interim dividend becomes a statutory distribution when the board's declaration is followed by appropriation through crediting shareholders' accounts, creating an enforceable obligation to pay. Under mercantile accounting, credits recording each shareholder's entitlement establish the company as debtor and the shareholders' right to sue for payment. Although an interim dividend may be reconsidered before appropriation or payment, that position does not apply once the liability has been acknowledged through account credits during the relevant accounting period. For rebate-reduction purposes under the Finance Act, 1956, this constitutes distribution to shareholders; the conclusion favours Revenue. Case-Laws Income Tax Wed, 14 Feb 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7941