https://www.taxtmi.com/caselaws?id=15927 Capital under the Companies (Profits) Surtax Act is not to be proportionately reduced merely because deductions are allowed under Chapter VI-A of the Income-tax Act. The character of a reserve for bad and doubtful debts depends on whether it is a true reserve or a provision for an existing or anticipated liability, and that question must be tested on the applicable principles. Dividends declared after the close of the accounting year relate back to that year and the corresponding amount cannot remain in general reserve for surtax capital computation. en-us Thu, 05 Feb 1998 00:00:00 +0530 Mon, 31 Aug 2009 10:39:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15927 Capital under the Companies (Profits) Surtax Act is not to be proportionately reduced merely because deductions are allowed under Chapter VI-A of the Income-tax Act. The character of a reserve for bad and doubtful debts depends on whether it is a true reserve or a provision for an existing or anticipated liability, and that question must be tested on the applicable principles. Dividends declared after the close of the accounting year relate back to that year and the corresponding amount cannot remain in general reserve for surtax capital computation. Case-Laws Income Tax Thu, 05 Feb 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15927