https://www.taxtmi.com/caselaws?id=22572 The High Court of Allahabad ruled in a case concerning the interpretation of Section 104 of the Income-tax Act, 1961. The Court held that only actual profits determined on commercial principles, not just book profits or assessable income, should be considered for Section 104. The Court emphasized the prevention of tax avoidance by closely held companies and disallowed fictitious claims like unproved loans. The company in question was found liable for additional tax under Section 104 due to the strict compliance required by the provision. en-us Tue, 18 Dec 1990 00:00:00 +0530 Fri, 11 Dec 2009 12:11:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=22572 The High Court of Allahabad ruled in a case concerning the interpretation of Section 104 of the Income-tax Act, 1961. The Court held that only actual profits determined on commercial principles, not just book profits or assessable income, should be considered for Section 104. The Court emphasized the prevention of tax avoidance by closely held companies and disallowed fictitious claims like unproved loans. The company in question was found liable for additional tax under Section 104 due to the strict compliance required by the provision. Case-Laws Income Tax Tue, 18 Dec 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=22572