https://www.taxtmi.com/caselaws?id=37788 Section 23A of the Indian Income-tax Act, 1922 required the authority first to test whether the dividend distributed fell below the prescribed statutory percentage of total income after tax. If that threshold was not satisfied, the authority then had to consider whether the dividend was nevertheless reasonable having regard to prior losses, smallness of profits, and the company's financial position. The Calcutta HC noted that the statutory percentage had not been distributed as required and that the Tribunal wrongly treated 50% of commercial profits as enough. It also noted that no proper enquiry had been made into whether the dividend was unreasonable in the circumstances, and the assessee's contention failed. en-us Tue, 28 Mar 1978 00:00:00 +0530 Thu, 01 Apr 2010 11:20:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37788 Section 23A of the Indian Income-tax Act, 1922 required the authority first to test whether the dividend distributed fell below the prescribed statutory percentage of total income after tax. If that threshold was not satisfied, the authority then had to consider whether the dividend was nevertheless reasonable having regard to prior losses, smallness of profits, and the company's financial position. The Calcutta HC noted that the statutory percentage had not been distributed as required and that the Tribunal wrongly treated 50% of commercial profits as enough. It also noted that no proper enquiry had been made into whether the dividend was unreasonable in the circumstances, and the assessee's contention failed. Case-Laws Income Tax Tue, 28 Mar 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37788