9911796707
TMI Blog1976 (8) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... ferred 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/liability to be excluded from the capital bas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 account as on January 1, 1964, was Rs. 56,88,107. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ualisation 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 transferred from the development reserve account to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ividend equalisation reserve account from the development reserve in the preceding year out of which the dividend was distributed. Thus, for the assessment year 1966-67, the whole of the sum of Rs. 1,47,72,153 should be included in the computation of capital for the purposes of surtax for the assessment year 1966-67.
There will be no order as to costs.
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