https://www.taxtmi.com/caselaws?id=39172 Arrear income-tax liabilities paid under subsisting assessment orders, though the assessments were still under appeal, had to be deducted when computing commercial profits and distributable surplus under section 23A of the Indian Income-tax Act, 1922. Taxes lawfully paid had gone out of the company's till and were not available for distribution as dividend. The relevant inquiry was the company's financial position within twelve months after the close of the previous year. On that basis, it was reasonable to hold that no dividend need be distributed, and the section 23A order was set aside. en-us Wed, 21 May 1975 00:00:00 +0530 Tue, 13 Apr 2010 13:47:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39172 Arrear income-tax liabilities paid under subsisting assessment orders, though the assessments were still under appeal, had to be deducted when computing commercial profits and distributable surplus under section 23A of the Indian Income-tax Act, 1922. Taxes lawfully paid had gone out of the company's till and were not available for distribution as dividend. The relevant inquiry was the company's financial position within twelve months after the close of the previous year. On that basis, it was reasonable to hold that no dividend need be distributed, and the section 23A order was set aside. Case-Laws Income Tax Wed, 21 May 1975 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39172