https://www.taxtmi.com/caselaws?id=6245 Appropriations of profits to reserve funds, though formally made after the close of the accounting year, may relate back to the first day of the next accounting period when they are referable to that year's profits and are intended to govern capital computation from that date. For rule 1 of the Second Schedule to the Companies (Profits) Surtax Act, 1964, capital is computed as on the first day of the previous year, but the later formalisation of the directors' allocation did not alter the character of the reserve. The allocation was therefore treated as part of the company's capital on the relevant date, and the Revenue's contrary contention failed. en-us Tue, 27 Apr 1971 00:00:00 +0530 Wed, 03 Dec 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6245 Appropriations of profits to reserve funds, though formally made after the close of the accounting year, may relate back to the first day of the next accounting period when they are referable to that year's profits and are intended to govern capital computation from that date. For rule 1 of the Second Schedule to the Companies (Profits) Surtax Act, 1964, capital is computed as on the first day of the previous year, but the later formalisation of the directors' allocation did not alter the character of the reserve. The allocation was therefore treated as part of the company's capital on the relevant date, and the Revenue's contrary contention failed. Case-Laws Income Tax Tue, 27 Apr 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6245