https://www.taxtmi.com/caselaws?id=60257 For surtax capital computation, dividend declared out of general reserve remained excluded from capital, following the settled approach on reserve-based distributions. By contrast, a transfer from revaluation reserve to general reserve was not to be treated as continued revaluation reserve where the underlying revalued assets had been fully depreciated and the reserve had lost its original character. Rule 1 fixed capital with reference to the opening day of the previous year, and Explanation 1 to rule 2 excluded only capital or reserve created by revaluation or similar book adjustment. The change in nature of the reserve, not its label, determined the result, so the transferred amount was not excluded from capital. en-us Thu, 08 Jul 1982 00:00:00 +0530 Tue, 04 Jan 2011 14:25:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=60257 For surtax capital computation, dividend declared out of general reserve remained excluded from capital, following the settled approach on reserve-based distributions. By contrast, a transfer from revaluation reserve to general reserve was not to be treated as continued revaluation reserve where the underlying revalued assets had been fully depreciated and the reserve had lost its original character. Rule 1 fixed capital with reference to the opening day of the previous year, and Explanation 1 to rule 2 excluded only capital or reserve created by revaluation or similar book adjustment. The change in nature of the reserve, not its label, determined the result, so the transferred amount was not excluded from capital. Case-Laws Income Tax Thu, 08 Jul 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=60257