https://www.taxtmi.com/caselaws?id=39548 Under section 23A of the Indian Income-tax Act, 1922, only amounts that were legally deductible in computing total income could reduce the statutory base; wealth-tax payable under the Wealth-tax Act, 1957 was not deductible for the relevant assessment years. The reasonableness of dividend distribution under section 23A had to be judged on commercial principles, applying the prudent businessman test and the company's overall financial position; on that basis, the declared dividends were treated as insufficient and a larger dividend was regarded as not unreasonable. en-us Tue, 15 May 1973 00:00:00 +0530 Sat, 17 Apr 2010 12:11:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39548 Under section 23A of the Indian Income-tax Act, 1922, only amounts that were legally deductible in computing total income could reduce the statutory base; wealth-tax payable under the Wealth-tax Act, 1957 was not deductible for the relevant assessment years. The reasonableness of dividend distribution under section 23A had to be judged on commercial principles, applying the prudent businessman test and the company's overall financial position; on that basis, the declared dividends were treated as insufficient and a larger dividend was regarded as not unreasonable. Case-Laws Income Tax Tue, 15 May 1973 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39548