https://www.taxtmi.com/caselaws?id=8446 A provision qualifies as a reserve for capital-computation purposes under the Super Profits Tax Act when it is specifically set apart out of profits by competent authority for a definite future purpose or contingency. Applying the ordinary commercial meaning of "reserve," the court treated provisions for bonus, taxation, and proposed dividends as reserves because they were earmarked for future liabilities, debited to the profit and loss account, and not merely accrued liabilities. They were therefore includible in the computation of capital under rule 1 of the Second Schedule. en-us Mon, 09 Aug 1971 00:00:00 +0530 Wed, 15 Apr 2009 11:55:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8446 A provision qualifies as a reserve for capital-computation purposes under the Super Profits Tax Act when it is specifically set apart out of profits by competent authority for a definite future purpose or contingency. Applying the ordinary commercial meaning of "reserve," the court treated provisions for bonus, taxation, and proposed dividends as reserves because they were earmarked for future liabilities, debited to the profit and loss account, and not merely accrued liabilities. They were therefore includible in the computation of capital under rule 1 of the Second Schedule. Case-Laws Income Tax Mon, 09 Aug 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8446