https://www.taxtmi.com/caselaws?id=21949 For surtax computation under rule 1 of the Second Schedule to the Companies (Profits) Surtax Act, 1964, a sum credited as reserve is not automatically includible in capital in full. Retirement gratuity and taxation reserves were includible only to the extent they exceeded the corresponding ascertained liabilities, with gratuity liability determined on actuarial valuation and tax liability by actual tax due. Dividend-related appropriation was also includible only to the extent it went beyond the dividend actually proposed and declared, because the portion committed for dividend could not be treated as reserve. en-us Fri, 26 Apr 1991 00:00:00 +0530 Sat, 05 Dec 2009 10:30:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=21949 For surtax computation under rule 1 of the Second Schedule to the Companies (Profits) Surtax Act, 1964, a sum credited as reserve is not automatically includible in capital in full. Retirement gratuity and taxation reserves were includible only to the extent they exceeded the corresponding ascertained liabilities, with gratuity liability determined on actuarial valuation and tax liability by actual tax due. Dividend-related appropriation was also includible only to the extent it went beyond the dividend actually proposed and declared, because the portion committed for dividend could not be treated as reserve. Case-Laws Income Tax Fri, 26 Apr 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=21949