https://www.taxtmi.com/caselaws?id=15765 Amounts set aside to meet anticipated losses, rather than known or existing liabilities, are treated as reserves for capital computation under the Companies (Profits) Surtax Act, 1964. On that basis, provision for doubtful debts and doubtful advances was held to remain part of capital until an actual bad debt or loss arose and was written off, with the treatment of bad debts under the Income-tax Act supporting that characterisation. The provision was therefore includible in the computation of capital for surtax purposes, and the issue was answered in favour of the assessee and against the Revenue. en-us Tue, 20 Jul 1999 00:00:00 +0530 Thu, 27 Aug 2009 15:42:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15765 Amounts set aside to meet anticipated losses, rather than known or existing liabilities, are treated as reserves for capital computation under the Companies (Profits) Surtax Act, 1964. On that basis, provision for doubtful debts and doubtful advances was held to remain part of capital until an actual bad debt or loss arose and was written off, with the treatment of bad debts under the Income-tax Act supporting that characterisation. The provision was therefore includible in the computation of capital for surtax purposes, and the issue was answered in favour of the assessee and against the Revenue. Case-Laws Income Tax Tue, 20 Jul 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15765