https://www.taxtmi.com/caselaws?id=35772 A proposed dividend is not "surplus" for rule 2(ii) of the Second Schedule to the Companies (Profits) Surtax Act, 1964. The expression "surplus" was given its ordinary commercial meaning as the balance remaining after required allocations, and once directors proposed a dividend, the amount earmarked for that purpose could not continue to be treated as surplus. The balance-sheet treatment under Schedule VI to the Companies Act, 1956, supported this view, and the analogy with contingent tax provisions was rejected because a proposed dividend becomes payable on declaration. The issue was answered in the negative, in favour of the revenue. en-us Wed, 08 Apr 1981 00:00:00 +0530 Tue, 16 Mar 2010 15:43:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=35772 A proposed dividend is not "surplus" for rule 2(ii) of the Second Schedule to the Companies (Profits) Surtax Act, 1964. The expression "surplus" was given its ordinary commercial meaning as the balance remaining after required allocations, and once directors proposed a dividend, the amount earmarked for that purpose could not continue to be treated as surplus. The balance-sheet treatment under Schedule VI to the Companies Act, 1956, supported this view, and the analogy with contingent tax provisions was rejected because a proposed dividend becomes payable on declaration. The issue was answered in the negative, in favour of the revenue. Case-Laws Income Tax Wed, 08 Apr 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=35772