https://www.taxtmi.com/caselaws?id=56102 For surtax computation under the Companies (Profits) Surtax Act, 1964, capital is determined only under the Second Schedule, and reserves may be reduced only in the specific situations that Schedule expressly permits. A general reserve shown in the balance sheet could not be reduced merely because depreciation allowed under the Income-tax Act exceeded depreciation provided in the books. The lower assessed profits, by themselves, did not justify a capital adjustment where no express statutory basis existed. A reserve created out of post-tax profits remained includible in capital, and the assessee's computation was therefore correct. en-us Thu, 24 Jan 1991 00:00:00 +0530 Wed, 01 Dec 2010 15:57:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=56102 For surtax computation under the Companies (Profits) Surtax Act, 1964, capital is determined only under the Second Schedule, and reserves may be reduced only in the specific situations that Schedule expressly permits. A general reserve shown in the balance sheet could not be reduced merely because depreciation allowed under the Income-tax Act exceeded depreciation provided in the books. The lower assessed profits, by themselves, did not justify a capital adjustment where no express statutory basis existed. A reserve created out of post-tax profits remained includible in capital, and the assessee's computation was therefore correct. Case-Laws Income Tax Thu, 24 Jan 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=56102