https://www.taxtmi.com/caselaws?id=20598 The Tribunal held that the amount in the gratuity reserve account should be included in the capital computation for surtax purposes under the Companies (Profits) Surtax Act, 1964, as it was not specifically earmarked for gratuity liability but used as a free reserve. Regarding the dividend reserve, the court determined that the amount utilized for dividend payments should be treated as a provision, while any excess in the dividend reserve beyond such payments could be considered a reserve for capital computation. The court directed the Tribunal to ascertain the quantum of any surplus in the dividend reserve account. en-us Mon, 19 Oct 1992 00:00:00 +0530 Mon, 16 Nov 2009 10:34:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20598 The Tribunal held that the amount in the gratuity reserve account should be included in the capital computation for surtax purposes under the Companies (Profits) Surtax Act, 1964, as it was not specifically earmarked for gratuity liability but used as a free reserve. Regarding the dividend reserve, the court determined that the amount utilized for dividend payments should be treated as a provision, while any excess in the dividend reserve beyond such payments could be considered a reserve for capital computation. The court directed the Tribunal to ascertain the quantum of any surplus in the dividend reserve account. Case-Laws Income Tax Mon, 19 Oct 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20598