https://www.taxtmi.com/caselaws?id=276407 Section 23A(1) dividend inquiry must account for pre-reconstruction losses when assessing whether a company unreasonably withheld dividends; losses adjusted against paid-up capital do not lose relevance to the company's commercial or accounting capacity to declare dividends. The statutory focus is on commercial/accounting profit as the source for dividends, not merely assessable income, so wiped-out book losses may still justify retaining profits to rebuild capital. Consequently, capital reconstruction does not automatically exclude earlier losses from consideration under section 23A(1). en-us Sat, 04 May 1963 00:00:00 +0530 Sat, 10 Nov 2018 11:11:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276407 Section 23A(1) dividend inquiry must account for pre-reconstruction losses when assessing whether a company unreasonably withheld dividends; losses adjusted against paid-up capital do not lose relevance to the company's commercial or accounting capacity to declare dividends. The statutory focus is on commercial/accounting profit as the source for dividends, not merely assessable income, so wiped-out book losses may still justify retaining profits to rebuild capital. Consequently, capital reconstruction does not automatically exclude earlier losses from consideration under section 23A(1). Case-Laws Income Tax Sat, 04 May 1963 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276407