https://www.taxtmi.com/caselaws?id=69233 General reserve continued to form part of the capital base under the Companies (Profits) Surtax Act, 1964 even where dividend was declared after the accounting year, because a dividend recommendation remained only a proposal until valid declaration created an enforceable liability. Relief under Chapter VIA of the Income-tax Act could not be treated as profits and gains not includible in total income for reducing capital under rule 4 of the Second Schedule, so the capital base was not to be reduced on that basis. An amount credited to goodwill reserve was also a reserve, not a provision for a known liability, and was includible in capital computation. The assessee's capital base computation was therefore upheld on all points. en-us Mon, 09 Jan 1978 00:00:00 +0530 Tue, 05 Apr 2011 18:41:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=69233 General reserve continued to form part of the capital base under the Companies (Profits) Surtax Act, 1964 even where dividend was declared after the accounting year, because a dividend recommendation remained only a proposal until valid declaration created an enforceable liability. Relief under Chapter VIA of the Income-tax Act could not be treated as profits and gains not includible in total income for reducing capital under rule 4 of the Second Schedule, so the capital base was not to be reduced on that basis. An amount credited to goodwill reserve was also a reserve, not a provision for a known liability, and was includible in capital computation. The assessee's capital base computation was therefore upheld on all points. Case-Laws Income Tax Mon, 09 Jan 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=69233