BHARAT FIRE AND GENERAL INSURANCE CO. LTD. NEW DELHI vs THE COMMISSIONER OF INCOME TAX, NEW DELHI

The Supreme Court held that the sum of Rs. 50,787/- received by the appellant as dividend from Rohtas Industries Ltd. was taxable under Section 2(6A) of the Indian Income-tax Act, 1922. The Court clarified that premiums received on shares issued prior to the Companies Act, 1956, are profits available for distribution and thus qualify as dividends. It ruled that Section 78 of the Companies Act does not alter the taxability of such dividends, affirming the High Court's decision against the appellant.