https://www.taxtmi.com/caselaws?id=49719 Undistributed profits do not qualify as a reserve under the Business Profits Tax Act unless they are clearly set apart as such on the relevant date. On 1 April 1946, the sum of Rs. 5,08,637 remained undistributed profits because the directors had recommended its distribution as dividend and it had not been earmarked for any reserve purpose; it was therefore not a reserve. For the same reason, profits earned from 1 January 1946 to 1 April 1946, which were also not separately appropriated, were not includible in reserves as on 1 April 1946. en-us Thu, 08 Oct 1953 00:00:00 +0530 Wed, 10 Sep 2014 09:05:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49719 Undistributed profits do not qualify as a reserve under the Business Profits Tax Act unless they are clearly set apart as such on the relevant date. On 1 April 1946, the sum of Rs. 5,08,637 remained undistributed profits because the directors had recommended its distribution as dividend and it had not been earmarked for any reserve purpose; it was therefore not a reserve. For the same reason, profits earned from 1 January 1946 to 1 April 1946, which were also not separately appropriated, were not includible in reserves as on 1 April 1946. Case-Laws Income Tax Thu, 08 Oct 1953 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49719