https://www.taxtmi.com/caselaws?id=29298 Dividend omission under section 104 of the Income-tax Act was to be judged on commercial and business considerations, not merely on assessable profits. The authority had to take an overall view of the company's financial position and assess the matter from the standpoint of a prudent businessman. Applying that approach, the company's losses in circulating capital, outstanding loans, doubtful recoveries and earlier proceedings under section 23A justified conserving resources rather than recommending dividends. On that basis, the penal super-tax action under section 104 was not justified, and the same principles governing section 23A were treated as applicable to section 104. en-us Wed, 09 Sep 1981 00:00:00 +0530 Fri, 12 Mar 2010 10:42:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=29298 Dividend omission under section 104 of the Income-tax Act was to be judged on commercial and business considerations, not merely on assessable profits. The authority had to take an overall view of the company's financial position and assess the matter from the standpoint of a prudent businessman. Applying that approach, the company's losses in circulating capital, outstanding loans, doubtful recoveries and earlier proceedings under section 23A justified conserving resources rather than recommending dividends. On that basis, the penal super-tax action under section 104 was not justified, and the same principles governing section 23A were treated as applicable to section 104. Case-Laws Income Tax Wed, 09 Sep 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=29298