https://www.taxtmi.com/caselaws?id=20660 For surtax capital computation under the Second Schedule to the Companies (Profits) Surtax Act, 1964, dividend declared after the close of the accounting period is not part of reserve capital. A dividend becomes an enforceable liability only on declaration at the annual general meeting; before that point, it is neither an accrued nor contingent liability and cannot be treated as a provision existing on the first day of the accounting year. The relation-back theory was rejected for this purpose, and the amount set apart for dividend was excluded from capital computation, leaving the reference answered in favour of the Revenue. en-us Wed, 10 Jan 1990 00:00:00 +0530 Mon, 16 Nov 2009 13:28:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20660 For surtax capital computation under the Second Schedule to the Companies (Profits) Surtax Act, 1964, dividend declared after the close of the accounting period is not part of reserve capital. A dividend becomes an enforceable liability only on declaration at the annual general meeting; before that point, it is neither an accrued nor contingent liability and cannot be treated as a provision existing on the first day of the accounting year. The relation-back theory was rejected for this purpose, and the amount set apart for dividend was excluded from capital computation, leaving the reference answered in favour of the Revenue. Case-Laws Income Tax Wed, 10 Jan 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20660