https://www.taxtmi.com/caselaws?id=37525 A capital redemption reserve created for redemption of preference shares was treated as a reserve, not a provision, under the Second Schedule to the Companies (Profits) Surtax Act, 1964. The expression "reserve" was read in its ordinary company-law sense, and the Explanation to rule 1 excluded only items falling within current liabilities and provisions. A reserve shown under Reserves and Surplus under the Companies Act remained part of the capital base, and later appropriation during the accounting year did not change its character. The amount was therefore includible in the capital base for surtax computation, and the reference was answered in favour of the assessee. en-us Thu, 19 Oct 1978 00:00:00 +0530 Tue, 30 Mar 2010 13:03:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37525 A capital redemption reserve created for redemption of preference shares was treated as a reserve, not a provision, under the Second Schedule to the Companies (Profits) Surtax Act, 1964. The expression "reserve" was read in its ordinary company-law sense, and the Explanation to rule 1 excluded only items falling within current liabilities and provisions. A reserve shown under Reserves and Surplus under the Companies Act remained part of the capital base, and later appropriation during the accounting year did not change its character. The amount was therefore includible in the capital base for surtax computation, and the reference was answered in favour of the assessee. Case-Laws Income Tax Thu, 19 Oct 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37525