...facts and in the circumstances of the case, the Tribunal was justified in holding that the arrears of dividends on cumulative preference shares should be deducted while working out the value of the...), who allowed the assessee's claim by referring to rule ID, Explanation II(ii)(f) which refers to “any amount representing contingent liabilities other than arrears of dividends payable in respect of...the cumulative preference shares”. The Commissioner held that the arrears of dividends on cumulative preference shares were not in the nature of a contingent liability and was not required to be...

...previous years were in arrears. The shares were sold with the arrear dividends. The assessee received the amount of arrear dividends and he first credited this sum to the profit and loss appropriation...received by purchaser--Whether taxable. HEADNOTE: The assessee--a dealer in shares and securities, purchased certain shares on which dividends relating to...stock-in-trade of the assessee remained the same both in the opening and the closing stocks. The assessee claimed that the amount of arrear dividends received was not income liable to income-tax as...

..., they passed a similar resolution for the payment of dividend on the cumulative preference shares which had remained in arrears in respect of the third year ended 30th June, 1958. In accordance with these resoluti...reported in In re Wakley1 and the other reported in Godfrey Phillips Ltd. v. Investment Trust Corporation Ltd. [1953] 1 All E.R 7., it took the view that dividends...subsequently paid, do not constitute dividends is respect of the years for which they were in arrears but are dividends in...

...issuance of duplicate share certificate and arrears of dividends / benefit accrued in respect of 150 shares. It is stated that the erstwhile Counsel noted the wrong date as a result he... 12 IN THE NATIONAL COMPANY LAW TRIBUNAL DIVISION BENCH (COURT– I) CHENNAI ATTENDANCE CUM ORDER SHEET OF THE HEARING HELD ON...) --------------------------------------------------------------------------------------------------------------------------------- IN THE MATTER OF : Shri Atul Gupta Vs MRF Ltd MAIN PETI...

...in the circumstances of the case, the Tribunal was right in law in holding that arrears of dividends on cumulative preference shares and depreciation as allowed in the income-tax assessment was...to be done in accordance with the provisions of Rule 1D of the Rules, So far as the question regarding deduction of arrears of dividends in respect of cumulative preference shares and depreciation is...payable with reference to the book profits in accordance with the law applicable thereto; (f) any amount representing contingent liabilities other than arrears of dividends payable in...

...with the law applicable thereto;(f) any amount representing contingent liabilities other than arrears of dividends payable in respect of cumulative...assessable at each relevant date. It is further not in doubt or dispute that the value of the jewelleries would be the price which a willing or informed buyer would offer therefor. As arrears of the...—(a) the paid-up capital in respect of equity shares;(b) the amount set apart for payment of dividends on preference shares and ...

...accrued dividends on vacant chits and arrears are assessable in the year in which such dividends arise?”2. In R.C No. 149 of 1978, which relates to the income-tax assessment year 19..., the following question of law is referred for our opinion:“Whether, on the facts and in the circumstances of the case, the accrued dividends on vacant chits are assessable in the year...in which such dividends were allowed to the foreman?”3. Although the questions of law in both the references are in a slightly different form, they represent the same controversy...

...;(f) any amount representing contingent liabilities other than arrears of dividends payable in respect of cumulative preference shares.”...limited companies where the dividend declared does not represent the correct state of affairs and to estimate the probable yield is no simple exercise. The dividends in these companies are declared to...dividends if any reflecting the profit-earning capacity on a reasonable commercial basis. But where they do not then the amount of yield on that basis will determine the value of the shares. In other...

...accumulate on the shares, but it does not seem that until 1918 any serious effort was made by the petitioner to claim the arrears of dividends. Sometime in 1948 the petitioner was informed...petitioner was appointed as his executor but apparently there was a long delay in obtaining probate with regard to the will. In the meantime dividends were declared by the Bank and continued to...resolution of the directors dated 29-9-1951. In the meantime in February 1949 the Bank had closed its doors and no question arose of any further dividends accruing after 1948. 3. In the...

...period for which the dividends are in arrears or if there is more than one class of shares, the dividends on each such class are in arrears, shall be stated. ‡(3) Arrears of fixe...amount shall be stated before deduction of income tax, except that in the case of tax free dividends the amount shall be...the different asset heads and deducted in arriving at the value of fixed assets.(f) Dividends declared by subsidiary companies after the date of the...

...representing contingent liabilities other than arrears of dividends payable in respect of cumulative preference shares.”Explanation I fixes the balance-sheet that is to be taken into...the balance-sheet shall not be treated as liabilities, namely:—(a) the paid-up capital in respect of equity shares;(b) the amount set apart for payment of dividends on....3. The Revenue, however, has insisted that the amounts set apart for payment of dividends shall not be treated as liability and maintained that the Wealth-tax Officer was right in adopting the...

...dividends, but in this case the arrears can be paid only if sufficient profits have been earned; or(c) the articles or terms of issue provide that arrears of preference dividend...of construction, that the preference shareholders in that case were entitled to the dividends declared while the company was a going concern but not as conferring on them a right to arrears of dividend..., as in the present case, payment of capital and arrears of dividends (whether declared or undeclared) up to the commencement of the winding up, in priority over the holders of the ordinary shares, it...

...representing contingent labilities other than arrears of dividends payable in respect of cumulative preference shares.”22. The Rules have been made in exercise of the powers conferred by...balance sheet shall not be treated as liabilities, namely:—(a) the paid-up capital in respect of equity shares;(b) the amount set apart for payment of dividends on...the amount set apart for dividends has already been included in the net value of assets of the Company and has been taken into account while arriving at the ‘break-up value’ of the shares, the...

...accordance with the law applicable thereto;(f) any amount representing contingent liabilities other than arrears of dividends payable in respect of cumulative preference shares...;“1. Whether on the facts and in the circumstanccs of the case, and having regard to the provisions of Explanation II(ii)(e) read with Explanation II (i)(f) to Rule ID of the...Wealth-tax Rules, 1957, the Tribunal was justified in directing that the provision for taxation appearing on liabilities side of the balance-sheet should not be reduced by the Advance tax paid...

..., other than ascertained liabilities; (vi) any amount representing contingent liabilities other than arrears of dividends payable in respect of...representing contingent liabilities other than arrears of dividends payable in respect of cumulative preference shares;" [Emphasis is ours...:— (i) the paid-up capital in respect of equity shares; (ii) the amount set apart for payment of dividends on...

...reference to the book profits in accordance with the law applicable thereto;(f) any amount representing contingent liabilities other than arrears of dividends payable in respect of...paid-up capital in respect of equity shares;(b) the amount set apart for payment of dividends on preference shares and equity shares where such dividends have not been declared before the...Sugla, J.:— The only question of law referred to us in this case at the instance of the Revenue is:“Whether, on the facts and in the circumstances of the case, the liabilities...

...Preference shares of Rs 100 each in respect of the years ended 30th June, 1956 and 1957, remaining in arrears be paid at the rate of six per cent (free of tax) out of the profits of the current year ending 30th June, 1960.”...fund viz. the profits before the ordinary share comes into receipt. ‘Arrears of dividend’ and ‘back dividends’ are inaccurate expressions.”9. In Palmers...resolution for distributing the dividends on the preference shares in respect of the year ended on June 30, 1958. These dividends were actually paid from June 24, 1960 onwards. Adjustment with regard...

...)(f) to rule ID of the Wealth-tax Rules, any amount representing contingent liabilities other than arrears of dividends payable in respect of cumulative preference shares shown as liability...amount representing contingent liabilities other than arrears of dividends payable in respect of cumulative preference shares, shall not be treated as liability. As per the earlier decisions, the...The Judgment of the Court was delivered byThanikkachalam, J.:— At the instance of the Department, the Tribunal referred the following two common questions in the cases of...

...the liquidation there existed undistributed profits.7. Similarly, in (1916) 2 Ch 1156 it was held that arrears of preferential dividends payable could not be limited....8. Similarly, in (1920) 1 Ch 5637 it was held that all unpaid preferential dividends were “arrears” of preferential dividends although no profits had been earned by the company, so...company, for equalization of dividends or for any other purposes of the company with full power to employ the assets constituting the Reserve Fund in the business of the company and that without being...

...circumstances of the present case because in that case at the time of the liquidation there existed undistributed profits.Similarly, in In re New Chinese Antimony Company, Limited it was held that ...any, of the preferential dividend at the commencement of the winding-up.Similarly, in In re Springbok Agricultural Estates, Limited, it was held that all unpaid preferential dividends were “arrears”...dividend due. It was held that no dividends having been declared between 1921 and 1925, none were due, and the preference shareholders were not entitled to be paid anything in respect of arrears...