https://www.taxtmi.com/caselaws?id=49298 Section 2(6A)(d) treats distributions on reduction of capital that are in substance a division of accumulated profits as dividends for tax purposes, and is a valid anti evasion fiscal provision within the taxation entry. For timing, such distributions are to be ascertained with reference to the date when the reduction of capital becomes effective and the company incurs the legal liability, to fix accumulated profits and the tax year; however, applying that rule to the present facts, the amounts were held to be distributed in the accounting year when they were actually paid or credited, and the appeal was dismissed. en-us Tue, 09 Feb 1965 00:00:00 +0530 Wed, 20 Aug 2014 19:18:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49298 Section 2(6A)(d) treats distributions on reduction of capital that are in substance a division of accumulated profits as dividends for tax purposes, and is a valid anti evasion fiscal provision within the taxation entry. For timing, such distributions are to be ascertained with reference to the date when the reduction of capital becomes effective and the company incurs the legal liability, to fix accumulated profits and the tax year; however, applying that rule to the present facts, the amounts were held to be distributed in the accounting year when they were actually paid or credited, and the appeal was dismissed. Case-Laws Income Tax Tue, 09 Feb 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49298