1976 (8) TMI 38

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.... KANTAWALA C.J.-The two questions referred to in this reference should be reframed as under : " 1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the sums of Rs. 10,71,250 and Rs. 45,88,362 for the assessment year 1965-66, being proposed dividend on preference shares and on equity shares, respectively, could not be treated as provision/liabi....

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....essment year 1965-66 there was an outstanding balance of Rs. 17,61,638 as on January 1, 1964, in the dividend equalisation reserve account. Out of the profits for the period ending December 31, 1963, a sum of Rs. 39,26,469 was also transferred to and credited in this dividend equalisation reserve account. Thus, the aggregate amount standing to the credit of the dividend equalisation reserve accoun....

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....e amount standing to the credit of the dividend equalisation reserve account should be treated as reserve for computing the capital base. For the assessment year 1966-67 as on January 1, 1965, being the first day of the previous year a sum of Rs. 28,495 was standing to the credit of the dividend equalisation reserve account. For the year ending December 31, 1964, a sum of Rs. 1,47,43,658 was tr....