1987 (4) TMI 64 - HC - Income Tax

Summary

The High Court of Kerala addressed two questions referred by the Income-tax Appellate Tribunal regarding the treatment of capital reserves and diminution of capital under the Companies (Profits) Surtax Act, 1964 for assessment years 1972-73 and 1973-74. Question No. 1 concerned the creation of capital reserves, while Question No. 2 involved the diminution of capital in relation to deductions under specific Income-tax Act sections. The court ruled in favor of the assessee on Question No. 2 based on a previous decision.