https://www.taxtmi.com/caselaws?id=49523 Section 23A of the Indian Income-tax Act, 1922 requires the test of "smallness of profits" to be applied on commercial principles, not by treating assessable income as identical to commercial profit. Although the excess realised on sale of machinery could be brought to tax through statutory fiction under the assessment provisions, that fiction did not alter its real character for the separate enquiry into whether a larger dividend would be unreasonable. Amounts deemed income for assessment purposes were therefore not automatically includible in commercial profits for section 23A. The excess on sale of machinery was excluded from commercial profits, and the question was answered in favour of the assessee. 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 Section 23A of the Indian Income-tax Act, 1922 requires the test of "smallness of profits" to be applied on commercial principles, not by treating assessable income as identical to commercial profit. Although the excess realised on sale of machinery could be brought to tax through statutory fiction under the assessment provisions, that fiction did not alter its real character for the separate enquiry into whether a larger dividend would be unreasonable. Amounts deemed income for assessment purposes were therefore not automatically includible in commercial profits for section 23A. The excess on sale of machinery was excluded from commercial profits, and the question was answered in favour of the assessee. Case-Laws Income Tax Thu, 17 Nov 1960 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49523