https://www.taxtmi.com/caselaws?id=5617 Section 23A of the Indian Income-tax Act, 1922 could not be applied merely because dividends were not declared within the prescribed period. The Income-tax Officer must consider all relevant circumstances and decide, as a prudent businessman or board of directors would, whether the non-distribution was unreasonable. On the stated facts, the assessee had not received funds in India in time, its books could not be brought from Pakistan, a local auditor had to be appointed, substantial liabilities had arisen in India, and Indian resources were insufficient to declare dividends. These undisputed factors justified the failure to declare dividends, and the assessee's explanation was accepted. en-us Wed, 08 Nov 1995 00:00:00 +0530 Wed, 26 Nov 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5617 Section 23A of the Indian Income-tax Act, 1922 could not be applied merely because dividends were not declared within the prescribed period. The Income-tax Officer must consider all relevant circumstances and decide, as a prudent businessman or board of directors would, whether the non-distribution was unreasonable. On the stated facts, the assessee had not received funds in India in time, its books could not be brought from Pakistan, a local auditor had to be appointed, substantial liabilities had arisen in India, and Indian resources were insufficient to declare dividends. These undisputed factors justified the failure to declare dividends, and the assessee's explanation was accepted. Case-Laws Income Tax Wed, 08 Nov 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5617