https://www.taxtmi.com/caselaws?id=6290 For section 23A(1), reasonableness of dividend policy must be assessed from business reality and the standpoint of prudent directors, not as a narrow tax-collection exercise. An established capital loss from depreciation in share value was a relevant commercial factor because it affected the company's overall financial position, even though the loss was capital in character and recovery might occur later. On that footing, the directors were justified in not declaring dividend, and the section 23A(1) order was unsustainable. en-us Mon, 09 Aug 1971 00:00:00 +0530 Wed, 03 Dec 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6290 For section 23A(1), reasonableness of dividend policy must be assessed from business reality and the standpoint of prudent directors, not as a narrow tax-collection exercise. An established capital loss from depreciation in share value was a relevant commercial factor because it affected the company's overall financial position, even though the loss was capital in character and recovery might occur later. On that footing, the directors were justified in not declaring dividend, and the section 23A(1) order was unsustainable. Case-Laws Income Tax Mon, 09 Aug 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6290