https://www.taxtmi.com/caselaws?id=332189 For capital computation under the Companies (Profits) Surtax Act, 1964, a general reserve is reduced only to the extent of the amount actually transferred from current profits in the relevant year, not by a larger amount later proposed for distribution as dividend; that principle was applied against the assessee. Debentures were also held includable in capital because the exclusion under Rule 1(iv) of the Second Schedule applies only where the terms do not permit redemption before seven years, and an express contractual right of redemption on three months' notice meant the debentures were redeemable within that period. Both questions were answered in favour of the Revenue. en-us Wed, 10 Aug 2016 00:00:00 +0530 Mon, 12 Sep 2016 19:41:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=332189 For capital computation under the Companies (Profits) Surtax Act, 1964, a general reserve is reduced only to the extent of the amount actually transferred from current profits in the relevant year, not by a larger amount later proposed for distribution as dividend; that principle was applied against the assessee. Debentures were also held includable in capital because the exclusion under Rule 1(iv) of the Second Schedule applies only where the terms do not permit redemption before seven years, and an express contractual right of redemption on three months' notice meant the debentures were redeemable within that period. Both questions were answered in favour of the Revenue. Case-Laws Income Tax Wed, 10 Aug 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=332189