https://www.taxtmi.com/caselaws?id=36025 Amounts shown as "Earned Surplus" in a balance-sheet were treated as reserves for capital computation under the Super Profits Tax Act, 1963 and the Companies (Profits) Surtax Act, 1964, because balances kept separately under that accounting pattern formed part of the capital fund rather than current profits. Applying the same principle, additions made to Earned Surplus during the year were to be related back to the first day of the previous year and included in the reserve computation under the Explanation to rule 1 of the Second Schedule. The Tribunal's narrower reading was rejected, and the assessee's treatment was accepted. en-us Wed, 24 Jan 1979 00:00:00 +0530 Thu, 18 Mar 2010 19:00:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36025 Amounts shown as "Earned Surplus" in a balance-sheet were treated as reserves for capital computation under the Super Profits Tax Act, 1963 and the Companies (Profits) Surtax Act, 1964, because balances kept separately under that accounting pattern formed part of the capital fund rather than current profits. Applying the same principle, additions made to Earned Surplus during the year were to be related back to the first day of the previous year and included in the reserve computation under the Explanation to rule 1 of the Second Schedule. The Tribunal's narrower reading was rejected, and the assessee's treatment was accepted. Case-Laws Income Tax Wed, 24 Jan 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36025