https://www.taxtmi.com/caselaws?id=27498 Forfeited dividend, having been specifically segregated from the mass of profits and carried under a distinct head, was treated as a reserve rather than a provision. Because it was not set apart against any known, existing, general, specific, or contingent liability in the relevant accounting year, its character depended on the real purpose of the appropriation and the surrounding circumstances. The fact that its ultimate use had not yet been fixed did not make it a provision for liability. It was therefore includible in the computation of capital under the Companies (Profits) Surtax Act, 1964, and the issue was answered in favour of the assessee. en-us Mon, 04 Feb 1985 00:00:00 +0530 Sat, 13 Feb 2010 12:17:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27498 Forfeited dividend, having been specifically segregated from the mass of profits and carried under a distinct head, was treated as a reserve rather than a provision. Because it was not set apart against any known, existing, general, specific, or contingent liability in the relevant accounting year, its character depended on the real purpose of the appropriation and the surrounding circumstances. The fact that its ultimate use had not yet been fixed did not make it a provision for liability. It was therefore includible in the computation of capital under the Companies (Profits) Surtax Act, 1964, and the issue was answered in favour of the assessee. Case-Laws Income Tax Mon, 04 Feb 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27498