https://www.taxtmi.com/caselaws?id=36102 For surtax capital computation under the Second Schedules, a provision made for taxation was treated as an accrued and existing liability, so it was not a reserve and could not be included in capital. By contrast, sums set apart for proposed dividends were treated as amounts earmarked for a contingent liability that had not matured because shareholder approval was still pending, so they retained the character of reserve and were includible in capital. The reference was therefore answered against the assessee on the taxation provision and in the assessee's favour on proposed dividends, with the capital computation to be adjusted accordingly. en-us Tue, 04 Apr 1978 00:00:00 +0530 Fri, 19 Mar 2010 13:03:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36102 For surtax capital computation under the Second Schedules, a provision made for taxation was treated as an accrued and existing liability, so it was not a reserve and could not be included in capital. By contrast, sums set apart for proposed dividends were treated as amounts earmarked for a contingent liability that had not matured because shareholder approval was still pending, so they retained the character of reserve and were includible in capital. The reference was therefore answered against the assessee on the taxation provision and in the assessee's favour on proposed dividends, with the capital computation to be adjusted accordingly. Case-Laws Income Tax Tue, 04 Apr 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36102