https://www.taxtmi.com/caselaws?id=7993 A dividend is treated as declared for tax purposes only when the company's resolution creates an immediate, enforceable debt in favour of the shareholder. Where the resolution makes the declaration itself conditional on remittance from a foreign country, the condition goes to the validity of the declaration, not merely to payment mechanics, so no immediate right arises. On that basis, a conditional dividend resolution does not amount to a declaration of dividend under section 12(1A) of the Indian Income-tax Act, 1922, and the amount is not chargeable as income of the year in which it was purportedly declared. The Companies Act context reinforces the requirement of immediate enforceability. en-us Fri, 20 Jun 1969 00:00:00 +0530 Thu, 26 Mar 2009 18:40:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7993 A dividend is treated as declared for tax purposes only when the company's resolution creates an immediate, enforceable debt in favour of the shareholder. Where the resolution makes the declaration itself conditional on remittance from a foreign country, the condition goes to the validity of the declaration, not merely to payment mechanics, so no immediate right arises. On that basis, a conditional dividend resolution does not amount to a declaration of dividend under section 12(1A) of the Indian Income-tax Act, 1922, and the amount is not chargeable as income of the year in which it was purportedly declared. The Companies Act context reinforces the requirement of immediate enforceability. Case-Laws Income Tax Fri, 20 Jun 1969 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7993