https://www.taxtmi.com/caselaws?id=7028 Section 23A requires a commercial appraisal of a company's financial position when assessing whether dividend non-declaration is justified for smallness of profits. The Income-tax Officer is to act on the standpoint of a prudent businessman or director, and the statutory factors are not exhaustive. Balance-sheet figures are not conclusive where cogent material shows that they do not reflect the true financial position. On the facts discussed, the assessed profit was small relative to capital, and the fall in the value of investments was a relevant circumstance in deciding whether dividend distribution was reasonable. en-us Thu, 14 Sep 1967 00:00:00 +0530 Sun, 08 Feb 2009 09:45:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7028 Section 23A requires a commercial appraisal of a company's financial position when assessing whether dividend non-declaration is justified for smallness of profits. The Income-tax Officer is to act on the standpoint of a prudent businessman or director, and the statutory factors are not exhaustive. Balance-sheet figures are not conclusive where cogent material shows that they do not reflect the true financial position. On the facts discussed, the assessed profit was small relative to capital, and the fall in the value of investments was a relevant circumstance in deciding whether dividend distribution was reasonable. Case-Laws Income Tax Thu, 14 Sep 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7028