https://www.taxtmi.com/caselaws?id=37115 Section 23A of the Indian Income-tax Act, 1922 applies only where, on commercial principles, a prudent director could reasonably have declared a larger dividend after considering all surrounding circumstances, including anticipated liabilities and the smallness of profits. The Calcutta High Court treated the revaluation of property, the provision for corporation tax, and the assessment of profits in the relevant years as material to that commercial judgment. On those facts, the Tribunal's view that the provision for anticipated municipal tax liability was justified in commercial accounting terms was accepted, and the order directing distribution of a larger dividend under section 23A was cancelled. en-us Mon, 13 Nov 1978 00:00:00 +0530 Fri, 26 Mar 2010 14:18:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37115 Section 23A of the Indian Income-tax Act, 1922 applies only where, on commercial principles, a prudent director could reasonably have declared a larger dividend after considering all surrounding circumstances, including anticipated liabilities and the smallness of profits. The Calcutta High Court treated the revaluation of property, the provision for corporation tax, and the assessment of profits in the relevant years as material to that commercial judgment. On those facts, the Tribunal's view that the provision for anticipated municipal tax liability was justified in commercial accounting terms was accepted, and the order directing distribution of a larger dividend under section 23A was cancelled. Case-Laws Income Tax Mon, 13 Nov 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37115