https://www.taxtmi.com/caselaws?id=168261 A company's financing arrangement with a bank did not, in law, prevent it from declaring dividends for surtax purposes, because it could still distribute profits through borrowing or other free assets. Under the penal surtax provision, the Revenue had to prove by facts found that the company unreasonably withheld a reasonable part of its actual income. The findings recorded did not supply sufficient evidence to support that conclusion, and the Board misdirected itself by treating the company as bearing the burden to justify non-distribution. On the facts stated, the direction under section 21 could not stand. en-us Tue, 10 Feb 1942 00:00:00 +0630 Wed, 11 Feb 2015 15:47:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=168261 A company's financing arrangement with a bank did not, in law, prevent it from declaring dividends for surtax purposes, because it could still distribute profits through borrowing or other free assets. Under the penal surtax provision, the Revenue had to prove by facts found that the company unreasonably withheld a reasonable part of its actual income. The findings recorded did not supply sufficient evidence to support that conclusion, and the Board misdirected itself by treating the company as bearing the burden to justify non-distribution. On the facts stated, the direction under section 21 could not stand. Case-Laws Income Tax Tue, 10 Feb 1942 00:00:00 +0630 https://www.taxtmi.com/caselaws?id=168261