https://www.taxtmi.com/caselaws?id=13657 For surtax capital computation, unappropriated profits shown in the United Kingdom profit and loss account were treated as part of reserves on the relevant balance-sheet date, supported by the accounting treatment and absence of a board resolution, and were therefore excluded from the capital computation. By contrast, a reserve relating to capital expenditure on scientific research was not treated as an amount actually allowed as a deduction in computing income, because a separate book entry and correspondence with expenditure did not by themselves satisfy the statutory exclusion. The first issue favoured the assessee, while the second favoured the Revenue. en-us Wed, 18 Apr 2007 00:00:00 +0530 Sat, 30 May 2009 18:41:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=13657 For surtax capital computation, unappropriated profits shown in the United Kingdom profit and loss account were treated as part of reserves on the relevant balance-sheet date, supported by the accounting treatment and absence of a board resolution, and were therefore excluded from the capital computation. By contrast, a reserve relating to capital expenditure on scientific research was not treated as an amount actually allowed as a deduction in computing income, because a separate book entry and correspondence with expenditure did not by themselves satisfy the statutory exclusion. The first issue favoured the assessee, while the second favoured the Revenue. Case-Laws Income Tax Wed, 18 Apr 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=13657