Dividend Distribution Tax not dependent on eventual taxability of dividend income

The Tata Power Company Limited Vs ACIT [ITA No. 4497/M/2008 Dated- 9 September 2011 (AY: 2001- 02)] The Tribunal ruled in the Tax Authority’s favor and held that the Taxpayer was not entitled to refund of Dividend Distribution Tax ( DDT)  for the following reasons: The Tribunal reiterated that the incidence of liability to pay DDT arises the moment such dividend is distributed (declared) and any subsequent events can have no bearing on such liability, even if such event renders dividend non-­taxable in the hands of the recipient. It was not possible to extend the same analogy lai...