https://www.taxtmi.com/caselaws?id=188439 Section 23A required an enquiry from the standpoint of a prudent businessman into whether a larger dividend was reasonably distributable after accounting for commercial profits. In computing distributable profits, approximate tax liability on those profits had to be deducted and earlier years' losses considered. The Tribunal's view that prior losses could be ignored because reserves existed was rejected, since adjustment of losses against current profits or reserves was a matter of business judgment, not tax direction. On that basis, the order under section 23A was not justified and the issue was resolved in favour of the assessee. en-us Wed, 24 Jul 1963 00:00:00 +0530 Thu, 01 Dec 2016 10:44:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=188439 Section 23A required an enquiry from the standpoint of a prudent businessman into whether a larger dividend was reasonably distributable after accounting for commercial profits. In computing distributable profits, approximate tax liability on those profits had to be deducted and earlier years' losses considered. The Tribunal's view that prior losses could be ignored because reserves existed was rejected, since adjustment of losses against current profits or reserves was a matter of business judgment, not tax direction. On that basis, the order under section 23A was not justified and the issue was resolved in favour of the assessee. Case-Laws Income Tax Wed, 24 Jul 1963 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=188439