https://www.taxtmi.com/caselaws?id=38955 For surtax capital computation under rule 1 of the Second Schedule to the Companies (Profits) Surtax Act, 1964, the character of an amount placed in a dividend reserve depends on its commercial substance on the relevant date. Amounts appropriated from profits and shown under reserves and surplus may count as reserve, but the portion earmarked to meet a recommended dividend is not reserve capital. On the facts, the aggregate dividend reserve of Rs. 5,90,000 had to be reduced by the dividend provision of Rs. 2,30,000, leaving Rs. 3,60,000 as the includible reserve. en-us Thu, 29 Jul 1976 00:00:00 +0530 Sat, 10 Apr 2010 14:57:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38955 For surtax capital computation under rule 1 of the Second Schedule to the Companies (Profits) Surtax Act, 1964, the character of an amount placed in a dividend reserve depends on its commercial substance on the relevant date. Amounts appropriated from profits and shown under reserves and surplus may count as reserve, but the portion earmarked to meet a recommended dividend is not reserve capital. On the facts, the aggregate dividend reserve of Rs. 5,90,000 had to be reduced by the dividend provision of Rs. 2,30,000, leaving Rs. 3,60,000 as the includible reserve. Case-Laws Income Tax Thu, 29 Jul 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38955