https://www.taxtmi.com/caselaws?id=288671 Distribution on liquidation is taxable as dividend only to the extent it is attributable to the company's accumulated profits immediately before liquidation. A notional profit arising from sale of capital assets under section 10(2)(vii) is treated as income only for assessment under that provision and does not become commercial or accumulated profit for dividend purposes. The legal fiction cannot be extended beyond its limited statutory purpose, so excess realised on sale of capital assets remains a capital return. Accordingly, the amount received by the shareholder on winding up was not dividend within section 2(6A)(c) and was not taxable as such. en-us Wed, 20 Apr 1966 00:00:00 +0530 Mon, 22 Jun 2020 16:44:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=288671 Distribution on liquidation is taxable as dividend only to the extent it is attributable to the company's accumulated profits immediately before liquidation. A notional profit arising from sale of capital assets under section 10(2)(vii) is treated as income only for assessment under that provision and does not become commercial or accumulated profit for dividend purposes. The legal fiction cannot be extended beyond its limited statutory purpose, so excess realised on sale of capital assets remains a capital return. Accordingly, the amount received by the shareholder on winding up was not dividend within section 2(6A)(c) and was not taxable as such. Case-Laws Income Tax Wed, 20 Apr 1966 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=288671