https://www.taxtmi.com/caselaws?id=36466 Earned surplus credited in the assessee's books was treated as a reserve where the amounts were specifically set apart for future business use and were not merely unallocated profits. The Explanation to rule 1 of the Second Schedule to the Companies (Profits) Surtax Act, 1964 was read as excluding only proposed or unfinalised allocations, not effective and complete transfers already made to the earned surplus account. On that basis, the credited balance retained the character of reserves and was included in the reserve base for surtax purposes, in favour of the assessee. en-us Mon, 22 Sep 1980 00:00:00 +0530 Mon, 22 Mar 2010 15:11:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36466 Earned surplus credited in the assessee's books was treated as a reserve where the amounts were specifically set apart for future business use and were not merely unallocated profits. The Explanation to rule 1 of the Second Schedule to the Companies (Profits) Surtax Act, 1964 was read as excluding only proposed or unfinalised allocations, not effective and complete transfers already made to the earned surplus account. On that basis, the credited balance retained the character of reserves and was included in the reserve base for surtax purposes, in favour of the assessee. Case-Laws Income Tax Mon, 22 Sep 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36466