https://www.taxtmi.com/caselaws?id=20934 Reasonable dividend distribution under section 104 of the Income-tax Act had to be assessed with reference to the company's statutory obligation to create reserve under section 205A of the Companies Act. The Tribunal had not examined the accounts to verify whether the reserve was in fact created, or whether sufficient funds still remained after such compliance to support a larger dividend. Because the lower authorities proceeded on the assumption that a higher dividend could still have been distributed, the matter was remanded to the Tribunal for fresh examination of the accounts and reconsideration of the dividend question. en-us Thu, 10 Aug 1989 00:00:00 +0530 Wed, 18 Nov 2009 11:49:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20934 Reasonable dividend distribution under section 104 of the Income-tax Act had to be assessed with reference to the company's statutory obligation to create reserve under section 205A of the Companies Act. The Tribunal had not examined the accounts to verify whether the reserve was in fact created, or whether sufficient funds still remained after such compliance to support a larger dividend. Because the lower authorities proceeded on the assumption that a higher dividend could still have been distributed, the matter was remanded to the Tribunal for fresh examination of the accounts and reconsideration of the dividend question. Case-Laws Income Tax Thu, 10 Aug 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20934