https://www.taxtmi.com/caselaws?id=37307 For surtax computation, capital is determined with reference to the first day of the previous year, and an amount standing in general reserve on that date cannot be reduced merely because dividend is declared later; the later recommendation and approval do not relate back to create a dividend liability. The court treated the Rs. 4,00,000 as part of general reserve and not a provision, so it remained includible in capital. The separately shown tax-free dividend reserve of Rs. 1,93,577 was also treated as a reserve, not a provision for any existing liability, and was includible in capital under the Companies (Profits) Surtax Act, 1964. en-us Fri, 30 Jun 1978 00:00:00 +0530 Mon, 29 Mar 2010 10:21:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37307 For surtax computation, capital is determined with reference to the first day of the previous year, and an amount standing in general reserve on that date cannot be reduced merely because dividend is declared later; the later recommendation and approval do not relate back to create a dividend liability. The court treated the Rs. 4,00,000 as part of general reserve and not a provision, so it remained includible in capital. The separately shown tax-free dividend reserve of Rs. 1,93,577 was also treated as a reserve, not a provision for any existing liability, and was includible in capital under the Companies (Profits) Surtax Act, 1964. Case-Laws Income Tax Fri, 30 Jun 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37307