https://www.taxtmi.com/caselaws?id=36114 Section 23A(1) turned on the smallness of commercial profits, not assessable profits. The Income-tax Officer had to assess the company's position as a prudent director would, considering actual accounting profits, past losses, surplus funds and future needs, before treating a dividend as unreasonable. Where the company's books, depreciation basis, directors' approval and auditors' acceptance supported the commercial accounts, a different depreciation figure used in tax assessment did not by itself justify invoking the provision. An order for deemed dividend could not be sustained solely on the assessment computation, and the revenue's approach was rejected. en-us Wed, 10 Jan 1979 00:00:00 +0530 Fri, 19 Mar 2010 13:35:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36114 Section 23A(1) turned on the smallness of commercial profits, not assessable profits. The Income-tax Officer had to assess the company's position as a prudent director would, considering actual accounting profits, past losses, surplus funds and future needs, before treating a dividend as unreasonable. Where the company's books, depreciation basis, directors' approval and auditors' acceptance supported the commercial accounts, a different depreciation figure used in tax assessment did not by itself justify invoking the provision. An order for deemed dividend could not be sustained solely on the assessment computation, and the revenue's approach was rejected. Case-Laws Income Tax Wed, 10 Jan 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36114