https://www.taxtmi.com/caselaws?id=8573 Section 23A was interpreted to require assessment of dividend propriety by reference to commercial profits, not merely assessed total income. The reasonableness of a higher dividend must be judged from the standpoint of a prudent businessman, taking account of prior tax liabilities and the company's reserves. On the stated facts, only a small balance remained after earlier tax obligations and the reserve position was modest, so insisting on a higher dividend would have been unreasonable and financially adverse. The section was therefore held inapplicable and super-tax was not leviable on that basis. en-us Mon, 13 Dec 1971 00:00:00 +0530 Thu, 30 Apr 2009 17:27:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8573 Section 23A was interpreted to require assessment of dividend propriety by reference to commercial profits, not merely assessed total income. The reasonableness of a higher dividend must be judged from the standpoint of a prudent businessman, taking account of prior tax liabilities and the company's reserves. On the stated facts, only a small balance remained after earlier tax obligations and the reserve position was modest, so insisting on a higher dividend would have been unreasonable and financially adverse. The section was therefore held inapplicable and super-tax was not leviable on that basis. Case-Laws Income Tax Mon, 13 Dec 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8573