https://www.taxtmi.com/caselaws?id=20654 Rule 2 of the Second Schedule to the Companies (Profits) Surtax Act, 1964 does not require exclusion of share investments from the capital base where existing general reserves already exceed the cost of those investments. Rule 3 applies only when there is an actual increase in paid-up share capital during the previous year; conversion of general reserves into bonus share capital is merely an internal reclassification and does not by itself increase capital under the Schedule. A later declaration of dividend at an annual general meeting does not increase capital for surtax computation where the point is governed by the applicable Supreme Court position. The overall effect is that reserve-to-capital transfers do not automatically enlarge surtax capital, and asset exclusion depends on the statutory computation framework. en-us Mon, 01 Mar 1993 00:00:00 +0530 Mon, 16 Nov 2009 13:16:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20654 Rule 2 of the Second Schedule to the Companies (Profits) Surtax Act, 1964 does not require exclusion of share investments from the capital base where existing general reserves already exceed the cost of those investments. Rule 3 applies only when there is an actual increase in paid-up share capital during the previous year; conversion of general reserves into bonus share capital is merely an internal reclassification and does not by itself increase capital under the Schedule. A later declaration of dividend at an annual general meeting does not increase capital for surtax computation where the point is governed by the applicable Supreme Court position. The overall effect is that reserve-to-capital transfers do not automatically enlarge surtax capital, and asset exclusion depends on the statutory computation framework. Case-Laws Income Tax Mon, 01 Mar 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20654