C.I.T.,MADURAI vs T V SUNDARAM IYENGAR & SONS

The Supreme Court held that under Section 23A of the Indian Income Tax Act, 1922, the Income Tax Officer is required to determine the minimum dividend a company should distribute based on separate statutory percentages for industrial (45%) and non-industrial (60%) profits. The Court found that the High Court erred in treating the profits of both segments as a single total income for all purposes. The appeal was allowed, affirming that the company was liable for additional super-tax on undistributed non-industrial profits, while the allocation of dividends for industrial profits was upheld.