https://www.taxtmi.com/caselaws?id=40209 A board-resolved interim dividend paid during the relevant previous year was not treated as a declaration of dividend by the company in general meeting. Under the Finance Act, 1964, rebate reduction applies where dividend is declared or distributed during the previous year, and Explanation 3 protects only dividends declared before that year and distributed within it. Because an interim dividend resolved by the board does not create an enforceable debt or amount to a company declaration, the operative event for tax purposes was its distribution. On that basis, the rebate reduction applied and the issue was answered in favour of the Revenue. en-us Wed, 21 Jan 1998 00:00:00 +0530 Thu, 03 Jul 2014 17:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=40209 A board-resolved interim dividend paid during the relevant previous year was not treated as a declaration of dividend by the company in general meeting. Under the Finance Act, 1964, rebate reduction applies where dividend is declared or distributed during the previous year, and Explanation 3 protects only dividends declared before that year and distributed within it. Because an interim dividend resolved by the board does not create an enforceable debt or amount to a company declaration, the operative event for tax purposes was its distribution. On that basis, the rebate reduction applied and the issue was answered in favour of the Revenue. Case-Laws Income Tax Wed, 21 Jan 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=40209