https://www.taxtmi.com/caselaws?id=19651 For surtax capital computation, dividend liability arises only on declaration at the annual general meeting and does not relate back to an earlier date. Where no separate reserve had been created on the first day of the accounting year for future dividend payment, the general reserve standing on that date could not be reduced by a dividend recommended later and declared subsequently. Applying that principle, the amount was not deductible from the general reserve as on 1 April 1973, and the question was answered in favour of the assessee. en-us Mon, 09 Nov 1992 00:00:00 +0530 Sat, 07 Nov 2009 16:30:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=19651 For surtax capital computation, dividend liability arises only on declaration at the annual general meeting and does not relate back to an earlier date. Where no separate reserve had been created on the first day of the accounting year for future dividend payment, the general reserve standing on that date could not be reduced by a dividend recommended later and declared subsequently. Applying that principle, the amount was not deductible from the general reserve as on 1 April 1973, and the question was answered in favour of the assessee. Case-Laws Income Tax Mon, 09 Nov 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=19651