1967 (9) TMI 12

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..... e assessment year concerned is 1963-64 ; and the accounting period, the 12 months ended on March 31, 1963. The question referred is : " Whether, on the facts and circumstances of the case, the sum of Rs. 3,27,446 under ' Reserves and Surplus ' in the balance-sheet, is to be taken into consideration in computing the capital of the applicant-company for the purpose of determining the standard deduction as contemplated in sub-section (9) of section 2 of the Super Profits Tax Act, 1963, and the Schedules mentioned therein ? Section 4 is the charging section of the Act. That section reads as follows : " Subject to the provisions contained in this Act, there shall be charged on every company for every assessment year commencing on and from .....

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..... per cent. of the capital of the company as computed in accordance with the provisions of the Second Schedule. Rule 1 of the Second Schedule, omitting the Explanations thereto, read as follows : " Subject to the other provisions contained in this Schedule, the capital of a company shall be the sum of the amounts, as on the first day of the previous year relevant to the assessment year, of its paid up share capital and of its reserve, if any, created under the proviso (b) to clause (vib) of sub-section (2) of section 10 of the Indian Income-tax Act, 1922 (11 of 1922), or under sub-section (3) of section 34 of the Income-tax Act, 1961 (43 of 1961), and of its other reserves in so far as the amounts credited to such other reserves have not .....

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..... derstood in common parlance. The dictionary meaning of the word ' reserve ' is : ' 1. (a) To keep for future use or enjoyment ; to store up for some time or occasion ; to refrain from using or enjoying at once. (b) To keep back or hold over to a later time or place or for further treatment ...... 6. To set apart for some purpose or with some end in view ; to keep for some use ...... II. To retain or preserve for certain purposes. (Oxford Dictionary, Vol. VIII, p. 513.) In Webster's New International Dictionary, second edition, page 2118, ' reserve' is defined as follows : ' 1. To keep in store for future or special use ; to keep in reserve ; to retain, to keep, as for onself. 2. To keep back ; to retain or hold over to a futur .....

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