https://www.taxtmi.com/caselaws?id=20991 Surtax capital computation treats an amount appropriated for proposed dividend as a provision rather than a reserve, excluding it from the capital base under the Second Schedule. Capitalisation of general reserve through bonus shares does not create an increase in capital under rule 3 where the paid-up capital increase is offset by a matching reduction in reserve; a real addition to the capital base is required. A pure legal objection to the permissibility of rectification may be raised as an additional ground. A bank loan previously found includible in the assessee's surtax capital base remains eligible where the loan and relevant circumstances are materially identical. en-us Wed, 09 Sep 1992 00:00:00 +0530 Wed, 18 Nov 2009 14:08:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20991 Surtax capital computation treats an amount appropriated for proposed dividend as a provision rather than a reserve, excluding it from the capital base under the Second Schedule. Capitalisation of general reserve through bonus shares does not create an increase in capital under rule 3 where the paid-up capital increase is offset by a matching reduction in reserve; a real addition to the capital base is required. A pure legal objection to the permissibility of rectification may be raised as an additional ground. A bank loan previously found includible in the assessee's surtax capital base remains eligible where the loan and relevant circumstances are materially identical. Case-Laws Income Tax Wed, 09 Sep 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20991