1979 (5) TMI 62

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.... erred in arriving at the break-up value of the shares held by the assessee in M/s Sundaram Industries Ltd., According to it the provision made by the company in the balance-sheet for dividend cannot be taken into account as part of the asset of the company. 2. The assessee, a HUF, claimed before the WTO that in working out the break-up value of shares, which are not quoted, proposed dividend s....

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.... 4. We are of the opinion that the order of the AAC is correct and has to be upheld. It is common ground that the proposed dividend was only a provision on the relevant valuation date, namely, 31st March, 1977 and that it was approved by the general body meeting only in the next year. Therefore, proposed dividend became a liability only in the next year. This proposition is well settled. For exam....