https://www.taxtmi.com/caselaws?id=7413 Under section 23A of the Income-tax Act, 1922, dividend reasonableness is judged by commercial profits and the surrounding circumstances, including any earlier losses or the smallness of profits. The expression "smallness of profits" refers to commercial profits, not merely assessed income. On the facts found, the company failed to show that a larger dividend was unreasonable, and payment of earlier years' tax arrears in the accounting year did not justify treating the low dividend as reasonable or the company as commercially insolvent for dividend purposes. The assessee-company was therefore liable to pay super-tax. en-us Wed, 10 Jul 1968 00:00:00 +0530 Thu, 19 Feb 2009 17:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7413 Under section 23A of the Income-tax Act, 1922, dividend reasonableness is judged by commercial profits and the surrounding circumstances, including any earlier losses or the smallness of profits. The expression "smallness of profits" refers to commercial profits, not merely assessed income. On the facts found, the company failed to show that a larger dividend was unreasonable, and payment of earlier years' tax arrears in the accounting year did not justify treating the low dividend as reasonable or the company as commercially insolvent for dividend purposes. The assessee-company was therefore liable to pay super-tax. Case-Laws Income Tax Wed, 10 Jul 1968 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7413