769/CBDT. - Income Tax - 769/CBDT

Instruction No: 769/CBDT Date of Issue: 9/10/1974 Section(s) Referred: 104 ,105 Statute: Income - Tax Act, 1961 The Finance Act, 1973, has amended Section 104(1) of the Income-tax Act, 1961 by inserting the words "within the said period of twelve months" after the words "the amount of dividend actually distributed, if any" for purposes of determining the amount with reference to which the additional income-tax is to be levied. Consequent to this amendment, Section 105 has been amended to make references to distribution of dividends within the period of twelve months referred to in Section 104(1)/ 2. I am directed to state that the effect of the amendment is that the dividends distributed by a company after the expiry of twelve months immediately following the expiry of the previous year in respect of which action under section 104 is being considered, should not be taken into account. This position of law will apply for assessment years 1974-75 and onwards. Income-tax Officers should, therefore, exercise due care in taking into account only the dividends which have actually been distributed within the period of twelve months following the expiry of the previous year relevant to which the order under section 104 is proposed to be passed. 3. These instruction may please be brought to the notice of all officers working in your charge.