https://www.taxtmi.com/caselaws?id=8355 A shareholder's renunciation of the right to apply for further shares in favour of minor daughters was treated as a transfer of an asset because the right to acquire the shares was transferable and the renunciation operated as a direction for allotment to another person. The resulting dividend income was held to arise directly from assets transferred by the assessees without adequate consideration, so it was includible in their total income under the applicable clubbing provisions. The reasoning emphasised the proximate link between the renunciation and the dividend income, rather than a remote connection. en-us Mon, 19 Jul 1971 00:00:00 +0530 Fri, 10 Apr 2009 16:40:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8355 A shareholder's renunciation of the right to apply for further shares in favour of minor daughters was treated as a transfer of an asset because the right to acquire the shares was transferable and the renunciation operated as a direction for allotment to another person. The resulting dividend income was held to arise directly from assets transferred by the assessees without adequate consideration, so it was includible in their total income under the applicable clubbing provisions. The reasoning emphasised the proximate link between the renunciation and the dividend income, rather than a remote connection. Case-Laws Income Tax Mon, 19 Jul 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8355