https://www.taxtmi.com/caselaws?id=39904 Section 23A's deemed-distribution fiction could not operate where, on the annual general meeting date, the Public Companies (Limitation of Dividends) Ordinance, 1948 prohibited declaration of further dividend beyond the prescribed limit. The legal position had to be tested by the law in force on that date, so the Income-tax Officer could not deem a larger dividend to have been declared. The subsequent repeal of the Ordinance did not change that result, because the earlier prohibition continued to govern the validity of the notional distribution, with section 6 of the General Clauses Act, 1897 preserving prior operation and accrued liabilities. The order under section 23A was therefore invalid. en-us Mon, 10 Oct 1966 00:00:00 +0530 Wed, 13 Aug 2014 17:55:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39904 Section 23A's deemed-distribution fiction could not operate where, on the annual general meeting date, the Public Companies (Limitation of Dividends) Ordinance, 1948 prohibited declaration of further dividend beyond the prescribed limit. The legal position had to be tested by the law in force on that date, so the Income-tax Officer could not deem a larger dividend to have been declared. The subsequent repeal of the Ordinance did not change that result, because the earlier prohibition continued to govern the validity of the notional distribution, with section 6 of the General Clauses Act, 1897 preserving prior operation and accrued liabilities. The order under section 23A was therefore invalid. Case-Laws Income Tax Mon, 10 Oct 1966 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39904