https://www.taxtmi.com/caselaws?id=8017 For surtax capital computation under the Companies (Profits) Surtax Act, amounts credited in the books to plant modernisation and rehabilitation reserve, loan redemption reserve and development rebate reserve on the relevant opening date were treated as reserves and included in capital, even though shareholder approval followed later. By contrast, dividend reserve and reserve for super profits tax were classified as provisions, not reserves, because amounts set apart for dividends and tax fall within liabilities and provisions under balance-sheet principles, and were excluded. The claimed excess provision for depreciation was also not accepted as part of the capital base, as it was not shown as a reserve and no supporting material established that character. en-us Tue, 28 Oct 1969 00:00:00 +0530 Fri, 27 Mar 2009 11:21:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8017 For surtax capital computation under the Companies (Profits) Surtax Act, amounts credited in the books to plant modernisation and rehabilitation reserve, loan redemption reserve and development rebate reserve on the relevant opening date were treated as reserves and included in capital, even though shareholder approval followed later. By contrast, dividend reserve and reserve for super profits tax were classified as provisions, not reserves, because amounts set apart for dividends and tax fall within liabilities and provisions under balance-sheet principles, and were excluded. The claimed excess provision for depreciation was also not accepted as part of the capital base, as it was not shown as a reserve and no supporting material established that character. Case-Laws Income Tax Tue, 28 Oct 1969 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8017