1979 (5) TMI 62

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..... 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 should not be considered as an asset. The WTO did not accept this claim. On appeal, .....

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..... 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 example, see the decision of the Supreme-Court in Kosoram Industries and Cotton Mills Ltd .....

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..... in the assessment of the individual share holders the Department takes one stand which is opposed to the stand taken in the assessment under Sur-tax Act on the companies. In this appeal, we are not called upon to decide about the alleged inconsistent stand of the Department. So far as the present assessment is concerned, we are satisfied that the orders of the lower authorities do not warrant any .....

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