https://www.taxtmi.com/caselaws?id=28905 Proposed dividend was held not to be a fund, surplus or reserve deductible from the cost of investments in computing capital under rule 2(ii) of the Second Schedule to the Companies (Profits) Surtax Act, 1964. Although it had not matured into a present legal liability on the relevant date, its commercial character was that of an appropriation for an anticipated distribution, not an amount available as a reserve for capital computation. The amount therefore could not be deducted, and the issue was answered against the assessee and in favour of the Revenue. en-us Mon, 09 Nov 1981 00:00:00 +0530 Mon, 08 Mar 2010 15:26:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28905 Proposed dividend was held not to be a fund, surplus or reserve deductible from the cost of investments in computing capital under rule 2(ii) of the Second Schedule to the Companies (Profits) Surtax Act, 1964. Although it had not matured into a present legal liability on the relevant date, its commercial character was that of an appropriation for an anticipated distribution, not an amount available as a reserve for capital computation. The amount therefore could not be deducted, and the issue was answered against the assessee and in favour of the Revenue. Case-Laws Income Tax Mon, 09 Nov 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28905