https://www.taxtmi.com/caselaws?id=12224 A credit balance in the profit and loss account is not automatically a reserve for capital computation under rule 1 of the Second Schedule to the Companies (Profits) Surtax Act, 1964 merely because it represents undistributed profits or may be available for working capital or dividend distribution. Amounts retained to meet a known liability do not constitute reserve, and the statutory scheme excludes surplus and unallocated profit and loss balances from reserves for surtax purposes. The balance therefore could not be treated as reserve, and the issue was decided in favour of the Revenue. en-us Tue, 13 Aug 2002 00:00:00 +0530 Sat, 20 Feb 2010 11:41:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=12224 A credit balance in the profit and loss account is not automatically a reserve for capital computation under rule 1 of the Second Schedule to the Companies (Profits) Surtax Act, 1964 merely because it represents undistributed profits or may be available for working capital or dividend distribution. Amounts retained to meet a known liability do not constitute reserve, and the statutory scheme excludes surplus and unallocated profit and loss balances from reserves for surtax purposes. The balance therefore could not be treated as reserve, and the issue was decided in favour of the Revenue. Case-Laws Income Tax Tue, 13 Aug 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=12224