https://www.taxtmi.com/caselaws?id=24526 Rule 4 of the Second Schedule to the Companies (Profits) Surtax Act, 1964 was not attracted to a proportionate reduction in capital claimed on account of relief under sections 80-I and 80M, consistent with the earlier Division Bench view. A bonus reserve is treated as part of capital where the balance-sheet material shows no nexus with an actual bonus liability and the amounts were not used for bonus payment; separate debit of bonus payments to the profit and loss account supported that treatment. The commentary concludes that both issues were resolved in favour of the assessee on the stated facts and precedent. en-us Wed, 28 Sep 1988 00:00:00 +0530 Wed, 20 Jan 2010 17:08:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=24526 Rule 4 of the Second Schedule to the Companies (Profits) Surtax Act, 1964 was not attracted to a proportionate reduction in capital claimed on account of relief under sections 80-I and 80M, consistent with the earlier Division Bench view. A bonus reserve is treated as part of capital where the balance-sheet material shows no nexus with an actual bonus liability and the amounts were not used for bonus payment; separate debit of bonus payments to the profit and loss account supported that treatment. The commentary concludes that both issues were resolved in favour of the assessee on the stated facts and precedent. Case-Laws Income Tax Wed, 28 Sep 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=24526