https://www.taxtmi.com/caselaws?id=8856 Retirement gratuity reserve was treated as a reserve, not a provision or current liability, for capital computation under the Companies (Profits) Surtax Act, 1964. The amount had not become an accrued liability or debt due in the accounting year; it was retained out of profits for future application. The balance-sheet explanation excluded current liabilities and provisions, but that exclusion did not apply because no present gratuity liability had arisen. The item had to be characterised by its substance rather than its accounting label, so it was includible in capital under rule 1 of the Second Schedule. en-us Tue, 08 Aug 1972 00:00:00 +0530 Tue, 16 Jun 2009 13:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8856 Retirement gratuity reserve was treated as a reserve, not a provision or current liability, for capital computation under the Companies (Profits) Surtax Act, 1964. The amount had not become an accrued liability or debt due in the accounting year; it was retained out of profits for future application. The balance-sheet explanation excluded current liabilities and provisions, but that exclusion did not apply because no present gratuity liability had arisen. The item had to be characterised by its substance rather than its accounting label, so it was includible in capital under rule 1 of the Second Schedule. Case-Laws Income Tax Tue, 08 Aug 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8856