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<h1>Gratuity excluded, doubtful debts included in capital base calculation</h1> The High Court of Gujarat held that the gratuity provision amount cannot be included in the capital base but ruled that the reserve for doubtful debts ... Search And Seizure The High Court of Gujarat ruled on two questions regarding gratuity provision and reserve for doubtful debts. The court held that the gratuity provision amount cannot be included in the capital base. However, the reserve for doubtful debts should be included in the computation of capital base. The judgment was in favor of the Revenue for question No. 1 and in favor of the assessee for question No. 2.