https://www.taxtmi.com/caselaws?id=36376 Section 23A was applied on a prudent-businessman basis, requiring the taxing authority to consider liabilities and risks intrinsically arising from concealed income when assessing distributable surplus. Penalties relatable to that concealed income were treated as real commercial hazards, so they could not be ignored merely because the penalties were imposed later. Concealed receipts were also not excluded from the surplus inquiry simply because they were undisclosed; they had to be assessed together with the attendant liabilities in determining what was commercially available for dividend distribution. On that approach, the reference was answered in favour of the assessee. en-us Mon, 04 Aug 1980 00:00:00 +0530 Mon, 22 Mar 2010 10:36:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36376 Section 23A was applied on a prudent-businessman basis, requiring the taxing authority to consider liabilities and risks intrinsically arising from concealed income when assessing distributable surplus. Penalties relatable to that concealed income were treated as real commercial hazards, so they could not be ignored merely because the penalties were imposed later. Concealed receipts were also not excluded from the surplus inquiry simply because they were undisclosed; they had to be assessed together with the attendant liabilities in determining what was commercially available for dividend distribution. On that approach, the reference was answered in favour of the assessee. Case-Laws Income Tax Mon, 04 Aug 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36376