Declaration of dividend and super-tax - Income Tax - 510/CBDT

INSTRUCTION NO. 510/CBDT Dated : Feburary 17, 1973 Section(s) Referred: 104 , 23A of 1922 Act Statute: Income - Tax Act, 1961 Reference is invited to the Board's Instruction F.No.52/26/64-I.T.(Inv.) dated 3.1.1966 wherein it was clarified that the dividends declared after the statutory period of 12 months but before taking action or passing order u/s 23A(1)/104 should be ignored while making an order u/s 23A/104 of the Income-tax Act, 1922/1961. 2. Recently the Supreme Court have, in the case of Commissioner of Income-tax, West Bengal Versus M/s. Abdul Rahim Osman Co. (India) Pvt.Ltd (C.A. Nos. 1378 and 1379 (NT) of 1969) held that dividends declared after the period of 12 months immediately following the expiry of the previous year but before the date of passing order u/s 23A(1) should be taken into consideration while calculating the additional super-tax as a result of order u/s 23A(1). The Board's instructions conveyed in F.No.52/26/64-IT(Inv.) dated 3.1.1966 are accordingly cancelled. 3. This decision will also apply to orders passed u/s 104(1) of the Income-tax Act. 1961.