https://www.taxtmi.com/caselaws?id=39032 For surtax computation under the Second Schedule to the Companies (Profits) Surtax Act, amounts appropriated as proposed dividend cannot be treated as capital merely because they are carried to dividend reserve or general reserve. The substance of the allocation prevails over its label: the portion directed to be paid as dividend is excluded from capital, while only the remaining balance may be included. On that basis, the proposed dividend components in the relevant reserve accounts were not includible, and only the surplus after exclusion of those amounts retained capital character. en-us Thu, 29 Jul 1976 00:00:00 +0530 Mon, 12 Apr 2010 11:09:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39032 For surtax computation under the Second Schedule to the Companies (Profits) Surtax Act, amounts appropriated as proposed dividend cannot be treated as capital merely because they are carried to dividend reserve or general reserve. The substance of the allocation prevails over its label: the portion directed to be paid as dividend is excluded from capital, while only the remaining balance may be included. On that basis, the proposed dividend components in the relevant reserve accounts were not includible, and only the surplus after exclusion of those amounts retained capital character. Case-Laws Income Tax Thu, 29 Jul 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39032