https://www.taxtmi.com/caselaws?id=9042 Amounts appropriated for proposed dividends and for tax liability are not reserves for capital computation under rule 1 of Schedule 2 to the Super Profits Tax Act, 1963, where they are earmarked to meet specific liabilities and are not available for the company's future use. The sum set apart for proposed dividends therefore could not be included as reserve. For tax provision, only the amount actually required to meet the tax liability is excluded from reserve treatment; any excess over the actual liability may qualify as reserve. As the precise tax liability had not been determined, the tax-provision issue required further examination. en-us Fri, 04 May 1973 00:00:00 +0530 Thu, 18 Jun 2009 19:01:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=9042 Amounts appropriated for proposed dividends and for tax liability are not reserves for capital computation under rule 1 of Schedule 2 to the Super Profits Tax Act, 1963, where they are earmarked to meet specific liabilities and are not available for the company's future use. The sum set apart for proposed dividends therefore could not be included as reserve. For tax provision, only the amount actually required to meet the tax liability is excluded from reserve treatment; any excess over the actual liability may qualify as reserve. As the precise tax liability had not been determined, the tax-provision issue required further examination. Case-Laws Income Tax Fri, 04 May 1973 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=9042