https://www.taxtmi.com/caselaws?id=35985 Dividend tax on a State Financial Corporation's distribution could not be sustained because no express charging provision authorised the levy; prescribing a tax rate did not create the tax liability, and the related rectification under section 154 fell with the invalid levy. By contrast, profit on surrender of loan bonds, accepted as capital assets, was taxable as capital gains because the assessee realised an excess on surrender of the capital asset. The reference was therefore answered partly for the assessee and partly against the assessee. en-us Mon, 08 Sep 1980 00:00:00 +0530 Thu, 18 Mar 2010 12:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=35985 Dividend tax on a State Financial Corporation's distribution could not be sustained because no express charging provision authorised the levy; prescribing a tax rate did not create the tax liability, and the related rectification under section 154 fell with the invalid levy. By contrast, profit on surrender of loan bonds, accepted as capital assets, was taxable as capital gains because the assessee realised an excess on surrender of the capital asset. The reference was therefore answered partly for the assessee and partly against the assessee. Case-Laws Income Tax Mon, 08 Sep 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=35985