https://www.taxtmi.com/caselaws?id=58119 Section 104(1) did not apply where a company in its formative stage retained profits for industrial development, expansion of its manufacturing programme, capital growth and business financing. Dividend declaration must be assessed from the standpoint of a prudent businessman, rather than solely by reference to available profits. Smallness of profits and genuine business requirements can justify non-declaration of dividend, even where the provision appears prima facie applicable. Limited donations did not establish that declaring a dividend or a higher dividend was commercially reasonable. en-us Thu, 11 Dec 1980 00:00:00 +0530 Fri, 17 Dec 2010 14:02:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=58119 Section 104(1) did not apply where a company in its formative stage retained profits for industrial development, expansion of its manufacturing programme, capital growth and business financing. Dividend declaration must be assessed from the standpoint of a prudent businessman, rather than solely by reference to available profits. Smallness of profits and genuine business requirements can justify non-declaration of dividend, even where the provision appears prima facie applicable. Limited donations did not establish that declaring a dividend or a higher dividend was commercially reasonable. Case-Laws Income Tax Thu, 11 Dec 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=58119