https://www.taxtmi.com/caselaws?id=40032 A company in liquidation was held not chargeable to super profits tax under the Super Profits Tax Act, 1963 because the statutory computation mechanism could not be applied. The charge under section 4 depended on chargeable profits exceeding the standard deduction, and the standard deduction required capital to be computed by identifying paid-up share capital and reserves under the Second Schedule and Rule 1. Once the company was in liquidation, its assets formed a single fund in the hands of the liquidator and the distinction between capital, reserves and accumulated profits disappeared. As the computation provisions failed entirely, the charging provision also could not operate. en-us Tue, 16 Oct 1984 00:00:00 +0530 Thu, 31 Jul 2014 09:34:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=40032 A company in liquidation was held not chargeable to super profits tax under the Super Profits Tax Act, 1963 because the statutory computation mechanism could not be applied. The charge under section 4 depended on chargeable profits exceeding the standard deduction, and the standard deduction required capital to be computed by identifying paid-up share capital and reserves under the Second Schedule and Rule 1. Once the company was in liquidation, its assets formed a single fund in the hands of the liquidator and the distinction between capital, reserves and accumulated profits disappeared. As the computation provisions failed entirely, the charging provision also could not operate. Case-Laws Income Tax Tue, 16 Oct 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=40032