https://www.taxtmi.com/caselaws?id=35786 For dividend taxation under section 2(6A)(e), only profits actually possessed by the company and capable of distribution as accumulated profits can support deemed dividend treatment; where capital gains were not ascertainable in the relevant period and the balance-sheet showed losses rather than distributable profits, the loan could not be taxed as dividend. The interest disallowance was retained because the record did not adequately show how borrowings were used between business and non-business purposes. For clubbing under section 16(3), income from a spouse is includible only to the extent traceable to the transferred asset, and income already assessed in the spouse's hands cannot be taxed again in the transferor's assessment. en-us Tue, 24 Mar 1981 00:00:00 +0530 Tue, 16 Mar 2010 16:08:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=35786 For dividend taxation under section 2(6A)(e), only profits actually possessed by the company and capable of distribution as accumulated profits can support deemed dividend treatment; where capital gains were not ascertainable in the relevant period and the balance-sheet showed losses rather than distributable profits, the loan could not be taxed as dividend. The interest disallowance was retained because the record did not adequately show how borrowings were used between business and non-business purposes. For clubbing under section 16(3), income from a spouse is includible only to the extent traceable to the transferred asset, and income already assessed in the spouse's hands cannot be taxed again in the transferor's assessment. Case-Laws Income Tax Tue, 24 Mar 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=35786