https://www.taxtmi.com/caselaws?id=59292 The Tribunal reversed the CIT(A)'s decision and restored the ITO's order, allowing the Revenue's appeal against the cancellation of the levy of additional tax under s. 104 for the assessment year 1979-80. The Tribunal found that the company's financial position did not justify the lower dividend declaration, emphasizing the importance of considering a company's financial position, commitments, and reserves when assessing the reasonableness of dividend declarations. The case highlighted the need for directors to act prudently based on business considerations and financial circumstances to avoid additional tax liabilities. en-us Thu, 21 Apr 1988 00:00:00 +0530 Mon, 27 Dec 2010 16:29:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=59292 The Tribunal reversed the CIT(A)'s decision and restored the ITO's order, allowing the Revenue's appeal against the cancellation of the levy of additional tax under s. 104 for the assessment year 1979-80. The Tribunal found that the company's financial position did not justify the lower dividend declaration, emphasizing the importance of considering a company's financial position, commitments, and reserves when assessing the reasonableness of dividend declarations. The case highlighted the need for directors to act prudently based on business considerations and financial circumstances to avoid additional tax liabilities. Case-Laws Income Tax Thu, 21 Apr 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=59292