https://www.taxtmi.com/caselaws?id=8368 Under section 23A of the Income-tax Act, 1922, dividend distribution must be judged on commercial considerations from the standpoint of a prudent businessman and in light of the company's overall financial position. Subsequent-year losses are not an independent factor for determining liability under the provision. They may, however, be considered as evidence when assessing whether the directors' expectation at the time of the dividend decision was reasonable and whether the refusal or limitation of dividend was commercially justified. en-us Fri, 27 Aug 1971 00:00:00 +0530 Fri, 10 Apr 2009 17:47:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8368 Under section 23A of the Income-tax Act, 1922, dividend distribution must be judged on commercial considerations from the standpoint of a prudent businessman and in light of the company's overall financial position. Subsequent-year losses are not an independent factor for determining liability under the provision. They may, however, be considered as evidence when assessing whether the directors' expectation at the time of the dividend decision was reasonable and whether the refusal or limitation of dividend was commercially justified. Case-Laws Income Tax Fri, 27 Aug 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8368