https://www.taxtmi.com/caselaws?id=9049 Section 23A(1) required assessment of commercial profits, not merely book or assessable income, and the test was whether prudent directors would consider a larger dividend reasonable in light of surplus funds, the company's overall financial position, prior losses, and future requirements. On the facts found, the Tribunal held that the disallowed amounts and sums still to be collected left insufficient profit to justify a higher dividend, and the revenue did not show that this finding was perverse or unsupported by material. Section 23A(1) was therefore not applicable on those facts, and the referred question was answered for the assessee. en-us Mon, 30 Jul 1973 00:00:00 +0530 Thu, 18 Jun 2009 19:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=9049 Section 23A(1) required assessment of commercial profits, not merely book or assessable income, and the test was whether prudent directors would consider a larger dividend reasonable in light of surplus funds, the company's overall financial position, prior losses, and future requirements. On the facts found, the Tribunal held that the disallowed amounts and sums still to be collected left insufficient profit to justify a higher dividend, and the revenue did not show that this finding was perverse or unsupported by material. Section 23A(1) was therefore not applicable on those facts, and the referred question was answered for the assessee. Case-Laws Income Tax Mon, 30 Jul 1973 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=9049