https://www.taxtmi.com/caselaws?id=59049 In surtax computation under the Companies (Profits) Surtax Act, 1964, dividend and royalty exclusions under the First Schedule were applied on the net income as computed under the Income-tax Act, not on gross receipts, and the 1 April 1981 amendment was treated as clarificatory. Rule 4 of the Second Schedule was not used to reduce capital base merely because Chapter VI-A deductions were allowed; a general reserve out of section 80J-exempt profits remained includible in capital base; short provision for gratuity could not be deducted from reserves; bonus shares did not require a proportionate increase in paid-up share capital; and deductions for section 80G donations were limited to the amount actually qualifying after the statutory ceiling. en-us Fri, 31 Jan 1986 00:00:00 +0530 Thu, 23 Dec 2010 16:59:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=59049 In surtax computation under the Companies (Profits) Surtax Act, 1964, dividend and royalty exclusions under the First Schedule were applied on the net income as computed under the Income-tax Act, not on gross receipts, and the 1 April 1981 amendment was treated as clarificatory. Rule 4 of the Second Schedule was not used to reduce capital base merely because Chapter VI-A deductions were allowed; a general reserve out of section 80J-exempt profits remained includible in capital base; short provision for gratuity could not be deducted from reserves; bonus shares did not require a proportionate increase in paid-up share capital; and deductions for section 80G donations were limited to the amount actually qualifying after the statutory ceiling. Case-Laws Income Tax Fri, 31 Jan 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=59049