https://www.taxtmi.com/caselaws?id=7032 Undistributed profits shown under "Reserves and Surplus" do not constitute a reserve for computing company capital under the Super Profits Tax Act unless there is a clear indication that the was set apart as a reserve for future use. The term "reserve" is not defined in the Act and must be given its ordinary meaning, so only amounts genuinely appropriated as capital reserves can enter the capital computation under the Second Schedule. On the facts, the amount was merely undistributed profits and not a true reserve, so it could not be included in capital for standard deduction. en-us Thu, 07 Sep 1967 00:00:00 +0530 Sun, 08 Feb 2009 09:52:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7032 Undistributed profits shown under "Reserves and Surplus" do not constitute a reserve for computing company capital under the Super Profits Tax Act unless there is a clear indication that the was set apart as a reserve for future use. The term "reserve" is not defined in the Act and must be given its ordinary meaning, so only amounts genuinely appropriated as capital reserves can enter the capital computation under the Second Schedule. On the facts, the amount was merely undistributed profits and not a true reserve, so it could not be included in capital for standard deduction. Case-Laws Income Tax Thu, 07 Sep 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7032