1968 (6) TMI 3 - HC - Income Tax

Section 23A Indian Income Tax Act, 1922 - notional dividend - distributable profit for purposes of section 23A of the IT Act, 1922, would not include notional dividend

Summary

The High Court of Madras held that notional dividend cannot be considered as distributable profit for the purpose of section 23A of the Indian Income-tax Act, 1922. The court ruled in favor of the assessee, stating that notional dividend is not an actual receipt and cannot be included in the total income available for distribution. The Tribunal's decision was upheld, and the reference was answered in favor of the assessee with costs.