https://www.taxtmi.com/caselaws?id=6851 Section 23A required the Income-tax Officer to assess the smallness of profits by reference to the commercial profit of the relevant year, viewed from a prudent businessman's standpoint and in light of the company's overall financial position. Earlier years' accumulated profits could not be aggregated to justify compulsory dividend distribution. The relevant enquiry remained whether the company's profits for the year, after tax and statutory reserve transfer, were sufficiently small to make non-distribution reasonable. On the stated facts, the available distributable profit was too small and the provision was not properly applied. en-us Fri, 22 Apr 1966 00:00:00 +0530 Fri, 06 Feb 2009 17:29:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6851 Section 23A required the Income-tax Officer to assess the smallness of profits by reference to the commercial profit of the relevant year, viewed from a prudent businessman's standpoint and in light of the company's overall financial position. Earlier years' accumulated profits could not be aggregated to justify compulsory dividend distribution. The relevant enquiry remained whether the company's profits for the year, after tax and statutory reserve transfer, were sufficiently small to make non-distribution reasonable. On the stated facts, the available distributable profit was too small and the provision was not properly applied. Case-Laws Income Tax Fri, 22 Apr 1966 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6851