https://www.taxtmi.com/caselaws?id=16931 Dividends declared out of reserves were required to be deducted from capital for surtax computation under the Explanation to Rule 1 of the Second Schedule to the Companies (Profits) Surtax Act, 1964. Applying the Supreme Court principle that the appropriation of profits for dividend relates back to the relevant accounting date, the amount earmarked for dividend could not continue to form part of the reserve for capital purposes. The reserve therefore had to be reduced by the dividend amount while computing surtax, and the issue was decided against the assessee and in favour of the Revenue. en-us Thu, 29 Aug 1996 00:00:00 +0530 Mon, 14 Sep 2009 11:34:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=16931 Dividends declared out of reserves were required to be deducted from capital for surtax computation under the Explanation to Rule 1 of the Second Schedule to the Companies (Profits) Surtax Act, 1964. Applying the Supreme Court principle that the appropriation of profits for dividend relates back to the relevant accounting date, the amount earmarked for dividend could not continue to form part of the reserve for capital purposes. The reserve therefore had to be reduced by the dividend amount while computing surtax, and the issue was decided against the assessee and in favour of the Revenue. Case-Laws Income Tax Thu, 29 Aug 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=16931