https://www.taxtmi.com/caselaws?id=49523 The Supreme Court interpreted Section 23A of the Indian Income-tax Act, 1922, in a case involving the inclusion of a specific sum in a company's assessable income for dividend distribution assessment. The Court clarified that the term "smallness of profit" should be assessed based on commercial profit, not just assessable income, emphasizing the source of dividends. It ruled that the sum in question, arising from the sale of machinery, should not impact the reasonableness of declaring a larger dividend as it was not part of the company's commercial profit. The Court upheld the High Court's decision, dismissing the appeal. en-us Thu, 17 Nov 1960 00:00:00 +0530 Mon, 01 Sep 2014 18:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49523 The Supreme Court interpreted Section 23A of the Indian Income-tax Act, 1922, in a case involving the inclusion of a specific sum in a company's assessable income for dividend distribution assessment. The Court clarified that the term "smallness of profit" should be assessed based on commercial profit, not just assessable income, emphasizing the source of dividends. It ruled that the sum in question, arising from the sale of machinery, should not impact the reasonableness of declaring a larger dividend as it was not part of the company's commercial profit. The Court upheld the High Court's decision, dismissing the appeal. Case-Laws Income Tax Thu, 17 Nov 1960 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49523