DALMIA J Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) IN this reference under section 66 of the INcome-tax Act the question propounded by the Tribunal for our consideration reads :

(2.) THERE does not appear to be any direct authority on the point but the distinction was based on the view that while, as was held by the Bombay High Court in Commissioner of Income-tax v. Laxmidas Mulraj Khatau, as soon as a dividend is declared in a general meeting of a company that dividend becomes the income of the assessee, the decision of the directors of the company to pay an interim dividend does not amount to a declaration of dividend under article 95 because such a decision is revocable and the dividend only becomes the income of the assessee when actually paid.