https://www.taxtmi.com/caselaws?id=39329 Section 23A requires commercial profits to be determined independently of book profit by considering the true nature of receipts and outgoings. A capital loss does not reduce commercial profits for this purpose, although it may be relevant when assessing whether a larger dividend could reasonably have been declared. The company's reserves, cash and bank balances, and overall financial position may also be weighed in testing dividend feasibility. On this approach, invocation of section 23A was treated as justified and consistent with law. en-us Tue, 30 Jul 1974 00:00:00 +0530 Thu, 15 Apr 2010 16:01:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39329 Section 23A requires commercial profits to be determined independently of book profit by considering the true nature of receipts and outgoings. A capital loss does not reduce commercial profits for this purpose, although it may be relevant when assessing whether a larger dividend could reasonably have been declared. The company's reserves, cash and bank balances, and overall financial position may also be weighed in testing dividend feasibility. On this approach, invocation of section 23A was treated as justified and consistent with law. Case-Laws Income Tax Tue, 30 Jul 1974 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39329