https://www.taxtmi.com/caselaws?id=15639 A bond redemption fund set aside from profits was not automatically a reserve for surtax capital computation; the decisive test was whether it was created to meet a known liability arising from borrowing. A sum appropriated to repay an existing obligation is a provision, not a reserve, even if sourced from surplus profits. The Tribunal had focused only on the origin of the amount and had not applied the correct commercial-accounting test distinguished by the Supreme Court. The issue was answered against the assessee and in favour of the Revenue, and the matter was remitted to the Tribunal for fresh decision under the governing ruling. en-us Fri, 05 Dec 1997 00:00:00 +0530 Wed, 26 Aug 2009 15:55:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15639 A bond redemption fund set aside from profits was not automatically a reserve for surtax capital computation; the decisive test was whether it was created to meet a known liability arising from borrowing. A sum appropriated to repay an existing obligation is a provision, not a reserve, even if sourced from surplus profits. The Tribunal had focused only on the origin of the amount and had not applied the correct commercial-accounting test distinguished by the Supreme Court. The issue was answered against the assessee and in favour of the Revenue, and the matter was remitted to the Tribunal for fresh decision under the governing ruling. Case-Laws Income Tax Fri, 05 Dec 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15639