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1992 (1) TMI 100 - SC - Income TaxWhether the sum of ₹ 90,00,000 or any part thereof would be a reserve for computing the capital as on January 1, 1963? Held that:- No hesitation to hold that though the general body of the shareholders resolved and appropriated on May 31, 1963, the dividend of ₹ 76,00,000 from the reserve of ₹ 90,00,000, it related back to the relevant assessment year and, therefore, as on January 1, 1963, ₹ 76,00,000 was a provision and cannot be computed as capital. Only ₹ 14,00,000 would be treated to be a reserve. The Tribunal and the High Court, therefore, have correctly laid down the law and it does not warrant interference. The appeal is, accordingly, dismissed
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