https://www.taxtmi.com/caselaws?id=49305 Section 23A of the Indian Income-tax Act, 1922 was explained as requiring the Income-tax Officer to consider the statutory dividend distribution test and then assess whether a larger dividend would be unreasonable on all relevant circumstances. "Smallness of profits" was held to mean commercial or accounting profits, not assessable income, and where tax had already been assessed, the actual assessed tax had to be deducted in computing those profits. The balance-sheet was only prima facie evidence and not conclusive. Because section 23A was treated as penal in character, the revenue bore the burden of proving that the statutory conditions for the order were satisfied. en-us Mon, 22 Mar 1965 00:00:00 +0530 Mon, 16 Oct 2017 11:32:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49305 Section 23A of the Indian Income-tax Act, 1922 was explained as requiring the Income-tax Officer to consider the statutory dividend distribution test and then assess whether a larger dividend would be unreasonable on all relevant circumstances. "Smallness of profits" was held to mean commercial or accounting profits, not assessable income, and where tax had already been assessed, the actual assessed tax had to be deducted in computing those profits. The balance-sheet was only prima facie evidence and not conclusive. Because section 23A was treated as penal in character, the revenue bore the burden of proving that the statutory conditions for the order were satisfied. Case-Laws Income Tax Mon, 22 Mar 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49305