https://www.taxtmi.com/caselaws?id=64701 For capital computation under rule 1(iii) of the Second Schedule to the Companies (Profits) Sur-tax Act, a development rebate reserve loses its separate character when transferred to general reserve, but any excess over the statutory reserve requirement may qualify as another reserve if not already allowed in income computation. The record did not show whether the full amount was statutory reserve or included such excess, so verification was required and the matter was remanded on that point. By contrast, a provision for income-tax or surtax made on a computed and reasoned basis remained a provision, not a reserve, because no excess over reasonable necessity was proved; that claim was rejected. en-us Tue, 19 Apr 1988 00:00:00 +0530 Wed, 09 Feb 2011 13:23:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=64701 For capital computation under rule 1(iii) of the Second Schedule to the Companies (Profits) Sur-tax Act, a development rebate reserve loses its separate character when transferred to general reserve, but any excess over the statutory reserve requirement may qualify as another reserve if not already allowed in income computation. The record did not show whether the full amount was statutory reserve or included such excess, so verification was required and the matter was remanded on that point. By contrast, a provision for income-tax or surtax made on a computed and reasoned basis remained a provision, not a reserve, because no excess over reasonable necessity was proved; that claim was rejected. Case-Laws Income Tax Tue, 19 Apr 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=64701