https://www.taxtmi.com/caselaws?id=49488 Amounts shown as "Undivided Profits" in a bank's accounts were treated as reserves for capital computation under rule 2(1) of Schedule II to the Business Profits Tax Act, 1947, because the decisive test was their real character, not their label. The accounting system and Treasury instructions required a separate head for these amounts, and the material showed they formed part of the bank's capital funds available for continuous business use. On that substance, the item was not merely unallocated profit in the Indian accounting sense but an integral component of the banking capital structure, and it was includible in capital. en-us Fri, 06 Jan 1961 00:00:00 +0530 Sun, 31 Aug 2014 18:45:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49488 Amounts shown as "Undivided Profits" in a bank's accounts were treated as reserves for capital computation under rule 2(1) of Schedule II to the Business Profits Tax Act, 1947, because the decisive test was their real character, not their label. The accounting system and Treasury instructions required a separate head for these amounts, and the material showed they formed part of the bank's capital funds available for continuous business use. On that substance, the item was not merely unallocated profit in the Indian accounting sense but an integral component of the banking capital structure, and it was includible in capital. Case-Laws Income Tax Fri, 06 Jan 1961 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49488