https://www.taxtmi.com/caselaws?id=38483 Under the Second Schedule to the Companies (Profits) Surtax Act, 1964, capital was computed with reference to the position on the first day of the previous year, so the unutilised balance in dividend equalisation reserve standing on that date remained includible. A proposed preference dividend was not a present liability deductible from capital, while excess provision for taxation and provision for gratuity were treated as reserves where they were not shown to be ascertained liabilities. Issue of bonus shares out of general reserve did not by itself increase computed capital for rule 3 purposes. Rule 4 applied only to income excluded from total income, not income that remained part of total income but enjoyed tax relief. en-us Wed, 11 Aug 1976 00:00:00 +0530 Tue, 06 Apr 2010 16:33:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38483 Under the Second Schedule to the Companies (Profits) Surtax Act, 1964, capital was computed with reference to the position on the first day of the previous year, so the unutilised balance in dividend equalisation reserve standing on that date remained includible. A proposed preference dividend was not a present liability deductible from capital, while excess provision for taxation and provision for gratuity were treated as reserves where they were not shown to be ascertained liabilities. Issue of bonus shares out of general reserve did not by itself increase computed capital for rule 3 purposes. Rule 4 applied only to income excluded from total income, not income that remained part of total income but enjoyed tax relief. Case-Laws Income Tax Wed, 11 Aug 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38483