https://www.taxtmi.com/caselaws?id=21385 A Settlement Commission order under the Income-tax Act could not bind surtax computation or authorise recasting of statutory balance-sheets prepared and adopted under company law. Undisclosed income later brought to tax through settlement was not a reserve for capital computation under the Companies (Profits) Surtax Act because, on the relevant accounting date, it had not been consciously appropriated to reserve and remained unappropriated profits. Excess provision for taxation also retained the character of a provision, as it related to a known liability and was not an appropriation to reserve. The surtax computation based on the original accounts was therefore upheld. en-us Tue, 06 Feb 1990 00:00:00 +0530 Tue, 24 Nov 2009 10:39:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=21385 A Settlement Commission order under the Income-tax Act could not bind surtax computation or authorise recasting of statutory balance-sheets prepared and adopted under company law. Undisclosed income later brought to tax through settlement was not a reserve for capital computation under the Companies (Profits) Surtax Act because, on the relevant accounting date, it had not been consciously appropriated to reserve and remained unappropriated profits. Excess provision for taxation also retained the character of a provision, as it related to a known liability and was not an appropriation to reserve. The surtax computation based on the original accounts was therefore upheld. Case-Laws Income Tax Tue, 06 Feb 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=21385