https://www.taxtmi.com/caselaws?id=16479 A retained premium under a reinsurance arrangement is not a "fund" for capital computation under rule 2(ii) of the Second Schedule to the Companies (Profits) Surtax Act, 1964, because the decisive test is ownership of the amount. The assessee merely withheld part of the premium otherwise payable to the foreign reinsurer, with the balance remaining payable with interest under the contract. That arrangement was a deferred premium payment mechanism, not a lending or borrowing transaction. On that basis, the premium reserve deposit account could not be included as a fund, and the Revenue's view prevailed. en-us Tue, 15 Sep 1998 00:00:00 +0530 Tue, 08 Sep 2009 11:13:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=16479 A retained premium under a reinsurance arrangement is not a "fund" for capital computation under rule 2(ii) of the Second Schedule to the Companies (Profits) Surtax Act, 1964, because the decisive test is ownership of the amount. The assessee merely withheld part of the premium otherwise payable to the foreign reinsurer, with the balance remaining payable with interest under the contract. That arrangement was a deferred premium payment mechanism, not a lending or borrowing transaction. On that basis, the premium reserve deposit account could not be included as a fund, and the Revenue's view prevailed. Case-Laws Income Tax Tue, 15 Sep 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=16479