https://www.taxtmi.com/caselaws?id=8852 Amounts set apart out of profits or surpluses are reserves only if they are not intended to meet known liabilities or diminution in assets; amounts appropriated against existing liabilities are provisions. Applying that commercial distinction under the Second Schedule to the Super Profits Tax Act, the capital reserve, stocks and stores reserves, bad and doubtful debts reserves, obsolescence reserve, loans and insurance reserves, and investment reserve were includible in capital. The forfeited monies account, however, represented unclaimed dividends and similar sums referable to an existing liability to shareholders, so it was not a reserve and was excluded from capital computation. en-us Fri, 21 Jul 1972 00:00:00 +0530 Tue, 16 Jun 2009 12:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8852 Amounts set apart out of profits or surpluses are reserves only if they are not intended to meet known liabilities or diminution in assets; amounts appropriated against existing liabilities are provisions. Applying that commercial distinction under the Second Schedule to the Super Profits Tax Act, the capital reserve, stocks and stores reserves, bad and doubtful debts reserves, obsolescence reserve, loans and insurance reserves, and investment reserve were includible in capital. The forfeited monies account, however, represented unclaimed dividends and similar sums referable to an existing liability to shareholders, so it was not a reserve and was excluded from capital computation. Case-Laws Income Tax Fri, 21 Jul 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8852