1996 (6) TMI 8 - HC - Income Tax

Summary

The High Court of Madras considered three questions related to the computation of capital for the levy of surtax under the Companies (Profits) Surtax Act, 1964. The Court held that dividends declared should not be deducted from the general reserve and that the relief allowed under certain sections of the IT Act should not diminish the capital of the company for the purpose of the Surtax Act. The Court's decision was influenced by previous rulings of the Supreme Court.