https://www.taxtmi.com/caselaws?id=39866 Section 23A of the Indian Income-tax Act, 1922 applied where the company failed to show any concrete and existing financial need to justify retention of profits for future development. A prior board resolution to start a dental industry and use reserves for machinery and raw materials was insufficient because no material proved that the dividend for the relevant year was reduced for that purpose, that existing reserves were inadequate, or that the board or general body had resolved to retain a larger share of profits. In the absence of positive evidence linking the smaller dividend to genuine expansion needs, the statutory conditions to resist action under section 23A were not established. en-us Tue, 23 Jul 1974 00:00:00 +0530 Tue, 20 Apr 2010 17:27:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39866 Section 23A of the Indian Income-tax Act, 1922 applied where the company failed to show any concrete and existing financial need to justify retention of profits for future development. A prior board resolution to start a dental industry and use reserves for machinery and raw materials was insufficient because no material proved that the dividend for the relevant year was reduced for that purpose, that existing reserves were inadequate, or that the board or general body had resolved to retain a larger share of profits. In the absence of positive evidence linking the smaller dividend to genuine expansion needs, the statutory conditions to resist action under section 23A were not established. Case-Laws Income Tax Tue, 23 Jul 1974 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39866