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1997 (7) TMI 531 - SC - Companies LawWhether a sum of ₹ 79 lakhs representing debenture redemption reserve was includible in computing the capital of the assessee-company for the purpose of Companies (Profits) Surtax Act, 1964? Whether the sums of ₹ 6,66,159 constituted reserve and was required to be taken into account in the computation of the capital under the Super Profits Tax Act, 1963 ? Held that:- Appeal dismissed. The surplus and unallocated balance in the profit and loss account has been specifically excluded from 'reserves' for computation of capital under the Act. Therefore, availability of the amount for utilisation as working capital of the company or for distribution of dividend cannot be a criterion for deciding whether a particular amount retained from the profits of the company will be treated as its reserve or not. The amount of ₹ 6,66,159 will have to be treated as provision and not reserve.
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