https://www.taxtmi.com/caselaws?id=5551 Amounts brought to tax as a balancing charge under section 41(2) were examined for possible treatment as part of "accumulated profits" so as to attract deemed dividend taxation. The Bench noted conflicting authorities on whether section 41(2) creates a legal fiction confined to a limited purpose or whether an amount once treated as income operates as income for all purposes under the Act. Finding the issue difficult and of wider importance, it declined to give a final ruling and referred both questions to a larger Bench for authoritative determination. No definitive conclusion was reached on either the accumulated profits issue or the scope of the section 41(2) fiction. en-us Tue, 04 Feb 1997 00:00:00 +0530 Wed, 26 Nov 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5551 Amounts brought to tax as a balancing charge under section 41(2) were examined for possible treatment as part of "accumulated profits" so as to attract deemed dividend taxation. The Bench noted conflicting authorities on whether section 41(2) creates a legal fiction confined to a limited purpose or whether an amount once treated as income operates as income for all purposes under the Act. Finding the issue difficult and of wider importance, it declined to give a final ruling and referred both questions to a larger Bench for authoritative determination. No definitive conclusion was reached on either the accumulated profits issue or the scope of the section 41(2) fiction. Case-Laws Income Tax Tue, 04 Feb 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5551