https://www.taxtmi.com/caselaws?id=28424 Penal interest actually incurred by a company may be taken into account when judging the smallness of profits on commercial principles for dividend distribution under section 23A(1), because it is an outgo connected with profit-making activity. By contrast, the difference between depreciation claimed and depreciation allowed cannot be treated as a further reduction unless there is proof that commercial depreciation was higher than the amount already allowed under the Act. The same depreciation difference also cannot be deducted again from the undistributed balance for additional super-tax computation in the absence of a factual basis for any higher commercial allowance. en-us Thu, 04 Nov 1982 00:00:00 +0530 Mon, 22 Feb 2010 13:24:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28424 Penal interest actually incurred by a company may be taken into account when judging the smallness of profits on commercial principles for dividend distribution under section 23A(1), because it is an outgo connected with profit-making activity. By contrast, the difference between depreciation claimed and depreciation allowed cannot be treated as a further reduction unless there is proof that commercial depreciation was higher than the amount already allowed under the Act. The same depreciation difference also cannot be deducted again from the undistributed balance for additional super-tax computation in the absence of a factual basis for any higher commercial allowance. Case-Laws Income Tax Thu, 04 Nov 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28424