1988 (12) TMI 24 - HC - Income Tax

Summary

The High Court of Bombay ruled that the dividend reserve and gratuity reserve were not considered 'reserves for the purpose of capital computation' under the Surtax Act of 1964. The decision was based on previous court rulings. The excess amount over the known or determinate liability of the assessee in respect of gratuity would be treated as reserve for capital computation. The judgment was delivered by Judge T. D. Sugla. No costs were awarded.