https://www.taxtmi.com/caselaws?id=276212 The court ruled in favor of the company, holding that the amounts recommended by the directors and accepted by the shareholders as reserves should be considered reserves from the end of the previous accounting period. The court emphasized that the shareholders' resolution had a retrospective effect, affirming the directors' recommendations based on the previous year's profits and appropriations. The court rejected the Commissioner's argument that the reserves were not constituted until the resolution date, upholding the Tribunal's decision and directing the Commissioner to pay the costs of the reference and notice of motion. en-us Thu, 23 Aug 1956 00:00:00 +0530 Fri, 02 Nov 2018 18:35:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276212 The court ruled in favor of the company, holding that the amounts recommended by the directors and accepted by the shareholders as reserves should be considered reserves from the end of the previous accounting period. The court emphasized that the shareholders' resolution had a retrospective effect, affirming the directors' recommendations based on the previous year's profits and appropriations. The court rejected the Commissioner's argument that the reserves were not constituted until the resolution date, upholding the Tribunal's decision and directing the Commissioner to pay the costs of the reference and notice of motion. Case-Laws Income Tax Thu, 23 Aug 1956 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276212