https://www.taxtmi.com/caselaws?id=12826 Arrears of dividends on cumulative preference shares are treated as deductible liabilities when computing break-up value under rule 1D of the Wealth-tax Rules, 1957. The statutory language in Explanation II(ii) and clause (f) shows that, although amounts in the balance-sheet are generally not treated as liabilities for valuation purposes, arrears of dividend on cumulative preference shares are expressly excluded from contingent liabilities and therefore fall to be deducted. The result is that such arrears reduce the share value for valuation under rule 1D. en-us Wed, 18 Feb 1998 00:00:00 +0530 Fri, 22 May 2009 11:56:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=12826 Arrears of dividends on cumulative preference shares are treated as deductible liabilities when computing break-up value under rule 1D of the Wealth-tax Rules, 1957. The statutory language in Explanation II(ii) and clause (f) shows that, although amounts in the balance-sheet are generally not treated as liabilities for valuation purposes, arrears of dividend on cumulative preference shares are expressly excluded from contingent liabilities and therefore fall to be deducted. The result is that such arrears reduce the share value for valuation under rule 1D. Case-Laws Income Tax Wed, 18 Feb 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=12826