2000 (11) TMI 1256 - HC - Income Tax

Summary

The High Court of Madras held that the order under section 104(1) of the Income-tax Act should not have been made by the ITO for the assessment years 1977-78 and 1978-79 as there was no detriment to the revenue due to the postponement of dividend declaration. The Tribunal's decision was upheld, stating that the revenue would not have benefited if the dividend had been distributed within the specified period. The Court emphasized that the Tribunal was correct in its findings, and the dividend declared after the twelve-month period should be treated as declared for the purposes of section 104.