https://www.taxtmi.com/caselaws?id=8765 Amounts can be treated as "reserves" for capital computation under the Super Profits Tax Act, 1963 only if they are specifically appropriated and kept apart for future use on the relevant valuation date. On that test, proposed dividends remained undistributed profits and not reserves; provision for taxation reflected an accrued liability and was only a provision; a credit balance in the profit and loss account was merely surplus; and a depreciation reserve, not shown to have been earmarked for future use, was also outside the reserve concept. The balance-sheet distinction between reserve, surplus, current liabilities and provisions under the Companies Act, 1956 supported that approach. en-us Thu, 23 Dec 1971 00:00:00 +0530 Wed, 03 Jun 2009 18:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8765 Amounts can be treated as "reserves" for capital computation under the Super Profits Tax Act, 1963 only if they are specifically appropriated and kept apart for future use on the relevant valuation date. On that test, proposed dividends remained undistributed profits and not reserves; provision for taxation reflected an accrued liability and was only a provision; a credit balance in the profit and loss account was merely surplus; and a depreciation reserve, not shown to have been earmarked for future use, was also outside the reserve concept. The balance-sheet distinction between reserve, surplus, current liabilities and provisions under the Companies Act, 1956 supported that approach. Case-Laws Income Tax Thu, 23 Dec 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8765