https://www.taxtmi.com/caselaws?id=184633 Section 23A may apply to a property-owning company assessed on notional income under Section 9, but its dividend-distribution test must account for actual distributable profits. Assessable income may exceed actual profits, while company law permits dividends only from profits and prohibits distributions from capital. Where the company has distributed all actual profits as dividends, a larger distribution cannot reasonably be required merely because the declared dividend is below the prescribed proportion of assessable income. On these facts, Section 23A was not properly invoked because no evidence established that a further lawful dividend could have been declared. en-us Tue, 12 Apr 1949 00:00:00 +0530 Thu, 14 Jul 2016 17:40:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=184633 Section 23A may apply to a property-owning company assessed on notional income under Section 9, but its dividend-distribution test must account for actual distributable profits. Assessable income may exceed actual profits, while company law permits dividends only from profits and prohibits distributions from capital. Where the company has distributed all actual profits as dividends, a larger distribution cannot reasonably be required merely because the declared dividend is below the prescribed proportion of assessable income. On these facts, Section 23A was not properly invoked because no evidence established that a further lawful dividend could have been declared. Case-Laws Income Tax Tue, 12 Apr 1949 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=184633