https://www.taxtmi.com/caselaws?id=40373 A capital reserve arising on takeover, where the consideration paid for the undertakings was less than the net value of the real and tangible assets and liabilities acquired as a going concern, was not excluded by Explanation 1 to rule 2 of the Second Schedule to the Companies (Profits) Surtax Act, 1964. The exclusion applies only to a paid-up share capital or reserve created by revaluation or by creating or increasing a book asset. As no book asset was created or increased by revaluation, the reserve remained includible in the company's capital for surtax computation, and the High Court's contrary view was set aside. en-us Mon, 19 Sep 2005 00:00:00 +0530 Fri, 13 Jun 2014 17:08:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=40373 A capital reserve arising on takeover, where the consideration paid for the undertakings was less than the net value of the real and tangible assets and liabilities acquired as a going concern, was not excluded by Explanation 1 to rule 2 of the Second Schedule to the Companies (Profits) Surtax Act, 1964. The exclusion applies only to a paid-up share capital or reserve created by revaluation or by creating or increasing a book asset. As no book asset was created or increased by revaluation, the reserve remained includible in the company's capital for surtax computation, and the High Court's contrary view was set aside. Case-Laws Income Tax Mon, 19 Sep 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=40373