https://www.taxtmi.com/caselaws?id=272918 Advance tax payments under section 18A of the Income-tax Act, 1922 were not a "reserve" for inclusion in capital under rule 2(1) of Schedule II of the Business Profits Tax Act. The court reasoned that a reserve is a sum voluntarily set apart out of profits for future use or contingency, whereas these payments were statutory instalments made towards an existing tax liability and were subject to interest and penalty provisions. They were not retained as the assessee's free property and were not necessarily paid out of profits. As the sums had already gone out of the company's control before the relevant accounting date, they could not form part of capital. en-us Wed, 14 Aug 1957 00:00:00 +0530 Thu, 24 May 2018 17:30:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=272918 Advance tax payments under section 18A of the Income-tax Act, 1922 were not a "reserve" for inclusion in capital under rule 2(1) of Schedule II of the Business Profits Tax Act. The court reasoned that a reserve is a sum voluntarily set apart out of profits for future use or contingency, whereas these payments were statutory instalments made towards an existing tax liability and were subject to interest and penalty provisions. They were not retained as the assessee's free property and were not necessarily paid out of profits. As the sums had already gone out of the company's control before the relevant accounting date, they could not form part of capital. Case-Laws Income Tax Wed, 14 Aug 1957 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=272918