https://www.taxtmi.com/caselaws?id=7431 A bona fide donation by a commercial company, if not claimed as a deduction and if it genuinely reduces the funds available for distribution, may be relevant in determining distributable surplus under section 23A of the Income-tax Act, 1922. The reasonableness of withholding a larger dividend must be judged on overall business and financial considerations, not by a rigid focus only on losses or small profits. Where the facts show actual reduction of distributable funds and no tax-avoidance purpose, the non-distribution of a further dividend may not justify levy of super-tax under section 23A. en-us Mon, 02 Sep 1968 00:00:00 +0530 Thu, 19 Feb 2009 18:06:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7431 A bona fide donation by a commercial company, if not claimed as a deduction and if it genuinely reduces the funds available for distribution, may be relevant in determining distributable surplus under section 23A of the Income-tax Act, 1922. The reasonableness of withholding a larger dividend must be judged on overall business and financial considerations, not by a rigid focus only on losses or small profits. Where the facts show actual reduction of distributable funds and no tax-avoidance purpose, the non-distribution of a further dividend may not justify levy of super-tax under section 23A. Case-Laws Income Tax Mon, 02 Sep 1968 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7431