https://www.taxtmi.com/caselaws?id=59834 For surtax capital computation under the Second Schedule, rule 4 requires capital to be reduced by the proportion of income, profits and gains not includible in total income against the company's total income, profits and gains, rather than by limiting the exercise to Indian income. A statutory appropriation of profits that is not earmarked to meet any specific liability or contingent loss qualifies as a reserve under rule 1. On these principles, the assessee's method of computation was accepted and the Debt Adjustment Fund was treated as part of capital. en-us Wed, 28 Jul 1982 00:00:00 +0530 Sat, 01 Jan 2011 13:54:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=59834 For surtax capital computation under the Second Schedule, rule 4 requires capital to be reduced by the proportion of income, profits and gains not includible in total income against the company's total income, profits and gains, rather than by limiting the exercise to Indian income. A statutory appropriation of profits that is not earmarked to meet any specific liability or contingent loss qualifies as a reserve under rule 1. On these principles, the assessee's method of computation was accepted and the Debt Adjustment Fund was treated as part of capital. Case-Laws Income Tax Wed, 28 Jul 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=59834