https://www.taxtmi.com/caselaws?id=57698 Capital gains arising from compulsory acquisition were held not to constitute commercial profits available for dividend distribution under section 104, because the provision must be applied from the standpoint of a prudent businessman and only real distributable commercial surplus can be considered; the directors' decision to carry the amount to reserve could not be displaced merely because the gain was taxable, and the assessee succeeded on this issue. The computation of distributable income was also upheld because it followed the earlier Tribunal allowance of the deduction for the V.S.T. & Sons liability, and no error was found in the Commissioner (Appeals)'s working, so the revenue failed on that challenge. en-us Wed, 22 Jul 1981 00:00:00 +0530 Mon, 13 Dec 2010 10:31:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=57698 Capital gains arising from compulsory acquisition were held not to constitute commercial profits available for dividend distribution under section 104, because the provision must be applied from the standpoint of a prudent businessman and only real distributable commercial surplus can be considered; the directors' decision to carry the amount to reserve could not be displaced merely because the gain was taxable, and the assessee succeeded on this issue. The computation of distributable income was also upheld because it followed the earlier Tribunal allowance of the deduction for the V.S.T. & Sons liability, and no error was found in the Commissioner (Appeals)'s working, so the revenue failed on that challenge. Case-Laws Income Tax Wed, 22 Jul 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=57698