9911796707
TMI Blog1961 (3) TMI 128X X X X Extracts X X X X X X X X Extracts X X X X ..... o September 30, 1951. The assessee is a Hindu undivided family and had as its karta, Shri J. Dalmia, and the assessee held 1,500 shares in the company Messrs. Govan Brothers (Rampur) Ltd. The directors of that company at a meeting held on August 30, 1950, declared an interim dividend of ₹ 275 per share which constitutes the disputed amount of ₹ 4,12,500. The payment of this interim dividend was made by a warrant issued on December 28, 1950, i.e., during the relevant accounting period. The view of the lower authorities that in spite of the fact that the dividend was declared by the directors on August 30, 1950, the dividend was liable to be included in the assessment year 1952-53 was upheld by the Appellate Tribunal. The decisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gunas Nitrate Co. Ltd. v. Henry Schroeder & Co. (1901) 17 TLR 625 In that case the directors of a company passed a resolution declaring an interim dividend payable on a future date, but before that date arrived the directors resolved that, having regard to certain litigation then pending, the payment of the dividend should be postponed. The directors had requested the company's bankers to set aside out of moneys in their hands under a special account entitled "interim dividend account" a sum sufficient to cover the dividend, pending the company's instructions, but on the termination of the litigation the company claimed a declaration that neither they nor their bankers were bound to apply the sum in payment of the dividend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... When in their opinion the profits of the company permit, the directors may declare an interim dividend." Thus the word "declare" is used in article 74 as compared with the word "pay" in article 96 of Table "A". It appears to me to be doubtful whether the use of the word "declare" in this article gives such a declaration the same status as the formal declaration of annual dividend at the company's general meeting. The matter is dealt with by Halsbury's Laws of England, third edition, volume 6, paragraph 778, as follows: "A final dividend can, as a general rule, only be sanctioned at the annual meeting, when the accounts are presented to it, and the articles usually contain a speci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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