https://www.taxtmi.com/caselaws?id=39046 A proposed dividend does not become a known or contingent liability before shareholder approval in general meeting, because the obligation to pay dividend is prospective and does not relate back to the first day of the accounting year. On that basis, the amount set aside for a later dividend declaration could not be treated as a provision or deducted from general reserves when computing capital under the Surtax Act, 1964. The analysis distinguished cases involving existing reserve items or already sanctioned reserves, which were not applicable where only a dividend recommendation existed and no amount had been set apart as a dividend reserve. en-us Fri, 18 Jun 1976 00:00:00 +0530 Mon, 12 Apr 2010 12:02:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39046 A proposed dividend does not become a known or contingent liability before shareholder approval in general meeting, because the obligation to pay dividend is prospective and does not relate back to the first day of the accounting year. On that basis, the amount set aside for a later dividend declaration could not be treated as a provision or deducted from general reserves when computing capital under the Surtax Act, 1964. The analysis distinguished cases involving existing reserve items or already sanctioned reserves, which were not applicable where only a dividend recommendation existed and no amount had been set apart as a dividend reserve. Case-Laws Income Tax Fri, 18 Jun 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39046