https://www.taxtmi.com/caselaws?id=64899 Where a company, because of serious and continuing shareholder deadlock, cannot effectively hold the requisite meeting or declare dividends, the dividend-distribution provisions are not applied mechanically. The analysis adopts an overall commercial view, asking whether a prudent businessman or director would regard the non-declaration as a practical necessity rather than a motivated omission. On the stated facts, the company's inability to act arose from circumstances beyond its control, and the provisions corresponding to section 23A of the 1922 Act and section 104 of the 1961 Act were treated as inapplicable. en-us Sat, 21 Apr 1984 00:00:00 +0530 Fri, 11 Feb 2011 10:41:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=64899 Where a company, because of serious and continuing shareholder deadlock, cannot effectively hold the requisite meeting or declare dividends, the dividend-distribution provisions are not applied mechanically. The analysis adopts an overall commercial view, asking whether a prudent businessman or director would regard the non-declaration as a practical necessity rather than a motivated omission. On the stated facts, the company's inability to act arose from circumstances beyond its control, and the provisions corresponding to section 23A of the 1922 Act and section 104 of the 1961 Act were treated as inapplicable. Case-Laws Income Tax Sat, 21 Apr 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=64899