https://www.taxtmi.com/caselaws?id=36028 The Supreme Court upheld the Tribunal's findings in favor of the assessee-company for the assessment years 1965-66 and 1966-67. The Court emphasized that the decision not to declare dividends was reasonable due to the need to build up reserves to meet potential liabilities arising from guarantee contracts, despite the managed company's financial strength. The Court highlighted the directors' authority in dividend declarations and the importance of considering business factors. The assessee was granted costs, emphasizing the significance of financial prudence in such cases involving guarantee obligations. en-us Tue, 15 Apr 1980 00:00:00 +0530 Fri, 19 Mar 2010 10:13:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36028 The Supreme Court upheld the Tribunal's findings in favor of the assessee-company for the assessment years 1965-66 and 1966-67. The Court emphasized that the decision not to declare dividends was reasonable due to the need to build up reserves to meet potential liabilities arising from guarantee contracts, despite the managed company's financial strength. The Court highlighted the directors' authority in dividend declarations and the importance of considering business factors. The assessee was granted costs, emphasizing the significance of financial prudence in such cases involving guarantee obligations. Case-Laws Income Tax Tue, 15 Apr 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36028