https://www.taxtmi.com/caselaws?id=17230 An amount appropriated out of profits and credited to a debenture redemption sinking fund was treated as a reserve, not a provision, for computation of capital base under the Companies (Profits) Surtax Act, 1964. The decisive factor was that the fund was not earmarked as a fixed liability item and remained available for the company's business use until debentures were redeemed. The balance could also be transferred to general reserve after cancellation of debentures, confirming its reserve character. The amount was therefore includible in the capital base for surtax, and the issue was answered in favour of the assessee. en-us Thu, 14 Nov 1996 00:00:00 +0530 Sat, 19 Sep 2009 18:22:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=17230 An amount appropriated out of profits and credited to a debenture redemption sinking fund was treated as a reserve, not a provision, for computation of capital base under the Companies (Profits) Surtax Act, 1964. The decisive factor was that the fund was not earmarked as a fixed liability item and remained available for the company's business use until debentures were redeemed. The balance could also be transferred to general reserve after cancellation of debentures, confirming its reserve character. The amount was therefore includible in the capital base for surtax, and the issue was answered in favour of the assessee. Case-Laws Income Tax Thu, 14 Nov 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=17230