https://www.taxtmi.com/caselaws?id=70820 The Tribunal upheld the decision to deduct proposed dividends from general reserves for calculating Companies (Profits) Surtax Act payable by the assessee for the years 1975-76 to 1978-79. Despite temporary restrictions on dividend payments, the Tribunal ruled that once declared, dividends constitute an existing liability, justifying the deduction from general reserves. The communication from the Department of Company Affairs clarified that the declaration was valid, and the liability had to be met once restrictions were lifted. Therefore, the Tribunal dismissed the appeals and affirmed the deduction of unpaid dividends from general reserves for the relevant assessment years. en-us Fri, 29 Jul 1983 00:00:00 +0530 Tue, 19 Apr 2011 14:17:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=70820 The Tribunal upheld the decision to deduct proposed dividends from general reserves for calculating Companies (Profits) Surtax Act payable by the assessee for the years 1975-76 to 1978-79. Despite temporary restrictions on dividend payments, the Tribunal ruled that once declared, dividends constitute an existing liability, justifying the deduction from general reserves. The communication from the Department of Company Affairs clarified that the declaration was valid, and the liability had to be met once restrictions were lifted. Therefore, the Tribunal dismissed the appeals and affirmed the deduction of unpaid dividends from general reserves for the relevant assessment years. Case-Laws Income Tax Fri, 29 Jul 1983 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=70820