https://www.taxtmi.com/caselaws?id=25678 An addition sustained as unexplained or undisclosed income does not, by itself, become commercial profit available for dividend distribution. For additional super-tax under section 104 of the Income-tax Act, 1961, the Revenue had to prove on the facts that the amount formed part of the company's commercial profits and distributable surplus. Because no independent material showed that the addition represented income capable of distribution as dividend, the section 104 charge could not be sustained. The principle applied was that an assessment addition may be valid for tax purposes without automatically creating distributable profits for dividend purposes. en-us Wed, 30 Jul 1986 00:00:00 +0530 Sat, 30 Jan 2010 11:39:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25678 An addition sustained as unexplained or undisclosed income does not, by itself, become commercial profit available for dividend distribution. For additional super-tax under section 104 of the Income-tax Act, 1961, the Revenue had to prove on the facts that the amount formed part of the company's commercial profits and distributable surplus. Because no independent material showed that the addition represented income capable of distribution as dividend, the section 104 charge could not be sustained. The principle applied was that an assessment addition may be valid for tax purposes without automatically creating distributable profits for dividend purposes. Case-Laws Income Tax Wed, 30 Jul 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25678