https://www.taxtmi.com/caselaws?id=7430 Section 23A could not be applied on a narrow comparison of the year's profits alone; the authority had to assess the company's overall commercial position, including earlier losses, current surplus, distributable profits and the reasonable needs of the business. The proper test was whether, on prudent business considerations, it would be unreasonable to withhold or declare further dividend. The Tribunal had proceeded on an incomplete factual appreciation of distributable profits and the assessment additions, so its reasoning was not sustained and the reference was answered in favour of the assessee. en-us Wed, 26 Jun 1968 00:00:00 +0530 Thu, 19 Feb 2009 18:02:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7430 Section 23A could not be applied on a narrow comparison of the year's profits alone; the authority had to assess the company's overall commercial position, including earlier losses, current surplus, distributable profits and the reasonable needs of the business. The proper test was whether, on prudent business considerations, it would be unreasonable to withhold or declare further dividend. The Tribunal had proceeded on an incomplete factual appreciation of distributable profits and the assessment additions, so its reasoning was not sustained and the reference was answered in favour of the assessee. Case-Laws Income Tax Wed, 26 Jun 1968 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7430