https://www.taxtmi.com/caselaws?id=12253 For capital base computation under rule 1(iii) of the Second Schedule to the Companies (Profits) Surtax Act, 1964, a development rebate reserve transferred to general reserve is not to be reduced from reserves merely because it originated from a tax-linked reserve. The text distinguishes development rebate under section 33 from the reserve condition in section 34(3)(a), noting that only amounts actually allowed as a deduction in computing income fall within the reduction rule. After the statutory period, the transferred amount continues to form part of reserves for capital base purposes. Where two interpretations are possible, the construction more beneficial to the assessee prevails. en-us Tue, 24 Sep 2002 00:00:00 +0530 Sat, 20 Feb 2010 12:33:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=12253 For capital base computation under rule 1(iii) of the Second Schedule to the Companies (Profits) Surtax Act, 1964, a development rebate reserve transferred to general reserve is not to be reduced from reserves merely because it originated from a tax-linked reserve. The text distinguishes development rebate under section 33 from the reserve condition in section 34(3)(a), noting that only amounts actually allowed as a deduction in computing income fall within the reduction rule. After the statutory period, the transferred amount continues to form part of reserves for capital base purposes. Where two interpretations are possible, the construction more beneficial to the assessee prevails. Case-Laws Income Tax Tue, 24 Sep 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=12253