https://www.taxtmi.com/caselaws?id=277064 For section 23A of the Income-tax Act, 1922, only the company's real commercial profits of the relevant accounting year could be considered for dividend-distribution purposes. Excess realised on the sale of a depreciated asset, though taxable as income under the deeming provisions of section 10(2)(vii) and section 2(6C), was not an actual profit shown in the profit and loss account and remained notional income for tax purposes. It could not be treated as part of the company's actual commercial profits merely because depreciation had earlier been allowed. The issue was answered in the negative, in favour of the assessee. en-us Thu, 24 Feb 1955 00:00:00 +0530 Fri, 23 Nov 2018 13:06:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=277064 For section 23A of the Income-tax Act, 1922, only the company's real commercial profits of the relevant accounting year could be considered for dividend-distribution purposes. Excess realised on the sale of a depreciated asset, though taxable as income under the deeming provisions of section 10(2)(vii) and section 2(6C), was not an actual profit shown in the profit and loss account and remained notional income for tax purposes. It could not be treated as part of the company's actual commercial profits merely because depreciation had earlier been allowed. The issue was answered in the negative, in favour of the assessee. Case-Laws Income Tax Thu, 24 Feb 1955 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=277064