Supreme Court · 1971 INSC 184 · Decided 9 August 1971
C. I. T. (Central) Calcutta v. Asiatic Textile LTD.
- Court
- Supreme Court of India
- Citation
- 1971 INSC 184 · [1972] 1 S.C.R. 81
- Case number
- CIVIL APPEAL No. 1687/1968
- Decided
- 9 August 1971
- Bench
- K.S. HEGDE, A.N. GROVER (2-judge bench)
- Outcome
- Dismissed
- Case type
- Civil
- Acts & sections cited
- Income Tax Act Section 23A
Headnote
Income-tax Act, 1922, s. 23A (!)-Direction of Company deciding not to distribute profit owing to huge capital loss­ Capital loss a relevant consideration-Reasonableness of decision has to be I ooked at from view point of prudent business man. 81 The assessee was a limited company doing for the assessment years 1955-56 and 1956-57 the company had assessable profits but did not declare dividend, because capital loss far in excess of profits was incurred by it due to fall in value of its share-holdings. The Income-tax Officer exercised his powers under s. 23A ( 1) and levied
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