https://www.taxtmi.com/caselaws?id=23829 For capital computation under the Second Schedule to the Companies (Profits) Surtax Act, 1964, a proposed dividend approved with the annual accounts was required to be deducted from general reserve, so the reserve was reduced accordingly. Borrowings from the specified financial institution remained includible where the borrowing agreement stipulated repayment over not less than seven years, and actual early repayment did not alter that statutory character. For exclusion from capital based on book-asset increase, the decisive factor was a demonstrable rise in the value of book assets; in the absence of revaluation or similar increase, mere transfer of reserves and capitalisation for bonus shares did not trigger the exclusion. en-us Mon, 11 Sep 1989 00:00:00 +0530 Thu, 14 Jan 2010 15:24:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=23829 For capital computation under the Second Schedule to the Companies (Profits) Surtax Act, 1964, a proposed dividend approved with the annual accounts was required to be deducted from general reserve, so the reserve was reduced accordingly. Borrowings from the specified financial institution remained includible where the borrowing agreement stipulated repayment over not less than seven years, and actual early repayment did not alter that statutory character. For exclusion from capital based on book-asset increase, the decisive factor was a demonstrable rise in the value of book assets; in the absence of revaluation or similar increase, mere transfer of reserves and capitalisation for bonus shares did not trigger the exclusion. Case-Laws Income Tax Mon, 11 Sep 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=23829