https://www.taxtmi.com/caselaws?id=38249 Under section 23A of the Indian Income-tax Act, 1922, dividend availability must be judged on commercial profits and the company's real financial position, not by a narrow mechanical computation. The broader enquiry includes what a prudent director would have done in the circumstances, and the exclusion of super-tax payable under section 23A does not displace that standard. On the facts noted, the material was insufficient to determine conclusively whether the dividend declared was reasonable, so the issue required fresh determination by the Tribunal. en-us Wed, 21 Jul 1976 00:00:00 +0530 Mon, 05 Apr 2010 11:42:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38249 Under section 23A of the Indian Income-tax Act, 1922, dividend availability must be judged on commercial profits and the company's real financial position, not by a narrow mechanical computation. The broader enquiry includes what a prudent director would have done in the circumstances, and the exclusion of super-tax payable under section 23A does not displace that standard. On the facts noted, the material was insufficient to determine conclusively whether the dividend declared was reasonable, so the issue required fresh determination by the Tribunal. Case-Laws Income Tax Wed, 21 Jul 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38249