https://www.taxtmi.com/caselaws?id=5635 Section 41(2) creates a limited deeming fiction by taxing the balancing charge on sale of depreciated assets as business income, but it does not convert that amount into commercial profits. For section 2(22)(c), "accumulated profits" means profits capable of distribution as dividend and does not include a capital receipt or return of capital in substance. Accordingly, an amount assessed under section 41(2) on sale of depreciated assets by a company in liquidation does not form part of accumulated profits for deemed dividend purposes, and the addition under section 2(22)(c) is not sustainable. en-us Fri, 23 Jan 1998 00:00:00 +0530 Tue, 30 Dec 2025 14:55:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5635 Section 41(2) creates a limited deeming fiction by taxing the balancing charge on sale of depreciated assets as business income, but it does not convert that amount into commercial profits. For section 2(22)(c), "accumulated profits" means profits capable of distribution as dividend and does not include a capital receipt or return of capital in substance. Accordingly, an amount assessed under section 41(2) on sale of depreciated assets by a company in liquidation does not form part of accumulated profits for deemed dividend purposes, and the addition under section 2(22)(c) is not sustainable. Case-Laws Income Tax Fri, 23 Jan 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5635