https://www.taxtmi.com/caselaws?id=55259 Section 104 additional income-tax was considered in the context of a company that did not declare dividend because trading profits were needed for business expansion, the new manufacturing unit was loss-making, and bank financing was subject to a condition that dividend could not be declared without permission. The text treats the levy as penal in nature and notes that the Revenue had to establish the statutory conditions for imposition. On these facts, the non-declaration of dividend was regarded as a bona fide commercial decision taken on reasonable business grounds, including preservation of banking facilities and support for expansion, so the levy was not sustainable. en-us Tue, 22 Apr 1997 00:00:00 +0530 Wed, 24 Nov 2010 19:00:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=55259 Section 104 additional income-tax was considered in the context of a company that did not declare dividend because trading profits were needed for business expansion, the new manufacturing unit was loss-making, and bank financing was subject to a condition that dividend could not be declared without permission. The text treats the levy as penal in nature and notes that the Revenue had to establish the statutory conditions for imposition. On these facts, the non-declaration of dividend was regarded as a bona fide commercial decision taken on reasonable business grounds, including preservation of banking facilities and support for expansion, so the levy was not sustainable. Case-Laws Income Tax Tue, 22 Apr 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=55259