https://www.taxtmi.com/caselaws?id=7306 For the purpose of section 23A of the Indian Income-tax Act, 1922, only profits actually available for distribution can be treated as distributable profits. A notional dividend is merely a legal fiction and not an actual receipt in the assessee's hands; although it may be included in total income for assessment, it does not constitute profit capable of actual distribution under section 23A. That position is distinct from best judgment assessment, where income determined is treated as actual income. The provision therefore could not be validly applied on the basis of notional dividend, and only actual profits in the assessee's hands were relevant. en-us Thu, 20 Jun 1968 00:00:00 +0530 Tue, 17 Feb 2009 18:35:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7306 For the purpose of section 23A of the Indian Income-tax Act, 1922, only profits actually available for distribution can be treated as distributable profits. A notional dividend is merely a legal fiction and not an actual receipt in the assessee's hands; although it may be included in total income for assessment, it does not constitute profit capable of actual distribution under section 23A. That position is distinct from best judgment assessment, where income determined is treated as actual income. The provision therefore could not be validly applied on the basis of notional dividend, and only actual profits in the assessee's hands were relevant. Case-Laws Income Tax Thu, 20 Jun 1968 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7306