https://www.taxtmi.com/caselaws?id=7620 Under section 23A of the Income-tax Act, 1922, the reasonableness of dividend distribution must be judged on all material circumstances, and an established capital loss is a relevant factor. Where the Tribunal found that the assessee had suffered a non-notional capital loss on share investments and that dividend payment would have invaded capital, that factual finding had to be accepted unless properly challenged through the statutory reference procedure. On that basis, non-distribution of dividend was treated as reasonable, and the Tribunal was held correct in concluding that declaring a dividend in either relevant year would have been unreasonable. en-us Wed, 30 Aug 1967 00:00:00 +0530 Thu, 05 Mar 2009 15:59:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7620 Under section 23A of the Income-tax Act, 1922, the reasonableness of dividend distribution must be judged on all material circumstances, and an established capital loss is a relevant factor. Where the Tribunal found that the assessee had suffered a non-notional capital loss on share investments and that dividend payment would have invaded capital, that factual finding had to be accepted unless properly challenged through the statutory reference procedure. On that basis, non-distribution of dividend was treated as reasonable, and the Tribunal was held correct in concluding that declaring a dividend in either relevant year would have been unreasonable. Case-Laws Income Tax Wed, 30 Aug 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7620