Case Name : CIT Vs. Hindustan general industries ltd.
Citation : [2000] 113 Taxman 506 (delhi)
Court : Delhi high court
Section : 194 to 206c
Meaning : The expression ‘before issuing’, as has been used in section 194, means ‘before sending out’ and tax has to be deducted by the company from the dividends paid before the date of the dividend warrants are sent out to the shareholders and not at the point of time at which the dividends are declared or dividend warrants are prepared. Section 201(1a) provides that the assessee shall be liable to pay interest at the rate of 12 per cent per annum on the amount of such tax from the date on which such tax was deductible to the date on which such tax was actually paid. As indicated above, in terms of section 194, the relevant date is the date on which dividend warrant is issued.