https://www.taxtmi.com/caselaws?id=12673 An amount retained to meet a known liability payable to a retrocessionaire, including accrued interest, is not a reserve for computing capital under the Companies (Profits) Surtax Act, 1964. The court applied the distinction between reserve and provision in company law and accountancy, and held that sums set apart for an existing liability fall outside the capital base under the Second Schedule, which also excludes current liabilities and provisions reflected in the balance-sheet. The referred question was answered in the negative, in favour of the Revenue and against the assessee. en-us Tue, 11 Sep 2001 00:00:00 +0530 Thu, 21 May 2009 10:56:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=12673 An amount retained to meet a known liability payable to a retrocessionaire, including accrued interest, is not a reserve for computing capital under the Companies (Profits) Surtax Act, 1964. The court applied the distinction between reserve and provision in company law and accountancy, and held that sums set apart for an existing liability fall outside the capital base under the Second Schedule, which also excludes current liabilities and provisions reflected in the balance-sheet. The referred question was answered in the negative, in favour of the Revenue and against the assessee. Case-Laws Income Tax Tue, 11 Sep 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=12673