1989 (9) TMI 34

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..... st question is at the instance of the assessee and the second is at the instance of the Revenue. The questions read thus : "(1) Whether, on the facts and in the circumstances of the case, the dividend reserve of Rs. 3,50,000 as on January 1, 1966, is includible as 'reserve' in the computation of capital of the assessee-company for the assessment year 1967-68 in terms of rule 1 of the Second Sche .....

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..... is, accordingly, so answered. When the matter goes back to the Tribunal, the Tribunal shall determine whether the appropriation of Rs. 4 lakhs towards gratuity reserve is in excess of the liability of the assessee on account of gratuity determined on actuarial calculation. If there is such excess, the amount thereof shall be deemed to be reserve and includible in the computation of the capital o .....

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