https://www.taxtmi.com/caselaws?id=24348 An amount received as compensation on nationalisation was treated as a capital reserve for surtax purposes because, on the relevant balance-sheet date, it was not earmarked to meet any known existing liability. Applying the substance-over-form distinction between reserve and provision, the sum was includible in the capital base under the Companies (Profits) Surtax Act, 1964. For reduction of share capital, the effective date was held to be the date of registration of the order and minute under section 103(2) of the Companies Act, since the reduction takes effect only on registration and not before. Both questions were answered in favour of the assessee. en-us Fri, 18 Nov 1988 00:00:00 +0530 Tue, 19 Jan 2010 13:42:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=24348 An amount received as compensation on nationalisation was treated as a capital reserve for surtax purposes because, on the relevant balance-sheet date, it was not earmarked to meet any known existing liability. Applying the substance-over-form distinction between reserve and provision, the sum was includible in the capital base under the Companies (Profits) Surtax Act, 1964. For reduction of share capital, the effective date was held to be the date of registration of the order and minute under section 103(2) of the Companies Act, since the reduction takes effect only on registration and not before. Both questions were answered in favour of the assessee. Case-Laws Income Tax Fri, 18 Nov 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=24348