https://www.taxtmi.com/caselaws?id=36134 For capital computation under the Companies (Profits) Surtax Act, 1964, only reserves existing on the first day of the previous year count under Rule 1 of the Second Schedule. Where the board merely proposes a dividend and the balance-sheet and directors' report remain subject to approval by the general body, the earmarked dividend amount does not continue as part of reserve once approved. The statutory Explanation to Rule 1 also excludes amounts in the nature of proposed dividends from reserve treatment. The text therefore explains that dividend-appropriated sums are not includible in capital for statutory deduction purposes. en-us Tue, 16 Dec 1980 00:00:00 +0530 Fri, 19 Mar 2010 14:45:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36134 For capital computation under the Companies (Profits) Surtax Act, 1964, only reserves existing on the first day of the previous year count under Rule 1 of the Second Schedule. Where the board merely proposes a dividend and the balance-sheet and directors' report remain subject to approval by the general body, the earmarked dividend amount does not continue as part of reserve once approved. The statutory Explanation to Rule 1 also excludes amounts in the nature of proposed dividends from reserve treatment. The text therefore explains that dividend-appropriated sums are not includible in capital for statutory deduction purposes. Case-Laws Income Tax Tue, 16 Dec 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36134