https://www.taxtmi.com/caselaws?id=55225 For applying section 23A(1) of the Income-tax Act, 1922, dividend policy must be judged on a broad commercial basis, not by assessed surplus alone. Past losses, nominal earlier profits, heavy earlier tax liabilities, and genuine business expansion or consolidation needs are relevant in deciding whether a company falls within the section. A dividend actually declared before the section 23A(1) order must also be deducted in computing undistributed profits, because the profits have in substance been distributed and the contrary approach would artificially inflate the balance and risk double taxation. en-us Tue, 22 Oct 1991 00:00:00 +0530 Wed, 24 Nov 2010 16:34:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=55225 For applying section 23A(1) of the Income-tax Act, 1922, dividend policy must be judged on a broad commercial basis, not by assessed surplus alone. Past losses, nominal earlier profits, heavy earlier tax liabilities, and genuine business expansion or consolidation needs are relevant in deciding whether a company falls within the section. A dividend actually declared before the section 23A(1) order must also be deducted in computing undistributed profits, because the profits have in substance been distributed and the contrary approach would artificially inflate the balance and risk double taxation. Case-Laws Income Tax Tue, 22 Oct 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=55225