https://www.taxtmi.com/caselaws?id=272918 Advance payments under section 18A are statutory payments on account of a present tax liability and not voluntary allocations of surplus profits; consequently they do not constitute a company reserve for purposes of rule 2(1) of Schedule II and are excluded from capital for abatement computation. The court applied the principle that reserves must be funds set aside out of profits and be existing and available on the first day of the chargeable accounting period, noting statutory interest, penalty and recall limitations and possible absence of profits at the time of payment; accounting assimilation on finalisation does not alter their intrinsic character as tax payments. 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 payments under section 18A are statutory payments on account of a present tax liability and not voluntary allocations of surplus profits; consequently they do not constitute a company reserve for purposes of rule 2(1) of Schedule II and are excluded from capital for abatement computation. The court applied the principle that reserves must be funds set aside out of profits and be existing and available on the first day of the chargeable accounting period, noting statutory interest, penalty and recall limitations and possible absence of profits at the time of payment; accounting assimilation on finalisation does not alter their intrinsic character as tax payments. Case-Laws Income Tax Wed, 14 Aug 1957 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=272918