https://www.taxtmi.com/caselaws?id=97468 For computing capital under rule 2(1) of Schedule II to the Business Profits Tax Act, only amounts actually and validly appropriated as reserves by the competent authority on or before the first day of the chargeable accounting period could be included. Amounts set apart before 1 April 1946 included Rs. 11,00,000 and Rs. 9,00,000 for tax liabilities, both treated as reserves because they had been validly earmarked; Rs. 2,73,504 remaining in profit and loss account was only undistributed profit and did not qualify. For the later period beginning 1 January 1947, a reserve created only on 15 April 1947 could not be related back to the earlier date, so Rs. 5,25,000 was excluded from capital. en-us Wed, 20 Mar 1957 00:00:00 +0530 Mon, 27 Jun 2016 12:42:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=97468 For computing capital under rule 2(1) of Schedule II to the Business Profits Tax Act, only amounts actually and validly appropriated as reserves by the competent authority on or before the first day of the chargeable accounting period could be included. Amounts set apart before 1 April 1946 included Rs. 11,00,000 and Rs. 9,00,000 for tax liabilities, both treated as reserves because they had been validly earmarked; Rs. 2,73,504 remaining in profit and loss account was only undistributed profit and did not qualify. For the later period beginning 1 January 1947, a reserve created only on 15 April 1947 could not be related back to the earlier date, so Rs. 5,25,000 was excluded from capital. Case-Laws Companies Law Wed, 20 Mar 1957 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=97468