https://www.taxtmi.com/caselaws?id=56041 In judging dividend restrictions under the accumulated-profits provisions, the relevant test is whether directors, acting as prudent businessmen on reasonable business grounds, could properly treat a disputed or contingent liability as unavailable for distribution. On that footing, excise duty liability was correctly excluded when assessing whether the dividend declared was unreasonable, so section 104 was not attracted on that basis. After excluding that amount, the remaining dividend shortfall fell below the 10 per cent margin, requiring the special shortfall-compliance mechanism under section 105(1)(ii), under which the assessee was entitled to an to make up the deficiency. en-us Mon, 13 Dec 1982 00:00:00 +0530 Wed, 01 Dec 2010 12:52:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=56041 In judging dividend restrictions under the accumulated-profits provisions, the relevant test is whether directors, acting as prudent businessmen on reasonable business grounds, could properly treat a disputed or contingent liability as unavailable for distribution. On that footing, excise duty liability was correctly excluded when assessing whether the dividend declared was unreasonable, so section 104 was not attracted on that basis. After excluding that amount, the remaining dividend shortfall fell below the 10 per cent margin, requiring the special shortfall-compliance mechanism under section 105(1)(ii), under which the assessee was entitled to an to make up the deficiency. Case-Laws Income Tax Mon, 13 Dec 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=56041