https://www.taxtmi.com/caselaws?id=277063 Income deemed assessable under section 42(2) of the Income-tax Act, 1922 was treated as part of total income for the initial threshold under section 23A, but it could not be counted as profits for the later commercial test of whether declaring a larger dividend would be unreasonable. The Bombay HC noted that section 23A distinguishes between assessable income and actual commercial profits, and a deeming fiction created for taxation does not convert notional income into distributable profits. Section 23A(5) did not change that position. Accordingly, notional income under section 42(2) was excluded from the profits relevant to the dividend-distribution inquiry under section 23A. en-us Tue, 23 Sep 1958 00:00:00 +0530 Fri, 23 Nov 2018 13:04:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=277063 Income deemed assessable under section 42(2) of the Income-tax Act, 1922 was treated as part of total income for the initial threshold under section 23A, but it could not be counted as profits for the later commercial test of whether declaring a larger dividend would be unreasonable. The Bombay HC noted that section 23A distinguishes between assessable income and actual commercial profits, and a deeming fiction created for taxation does not convert notional income into distributable profits. Section 23A(5) did not change that position. Accordingly, notional income under section 42(2) was excluded from the profits relevant to the dividend-distribution inquiry under section 23A. Case-Laws Income Tax Tue, 23 Sep 1958 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=277063