https://www.taxtmi.com/caselaws?id=18950 For surtax capital computation, the decisive question is whether the debenture redemption reserve was a reserve or a provision. An amount set aside to meet a known or existing liability is a provision and is excluded from capital, while an amount appropriated from profits for future use may qualify as a reserve if it is not earmarked for a current liability. The label used is not determinative; the true nature of the fund controls. On the available record, the exact character of the debenture redemption reserve and the basis of its creation were unclear, so the matter required fresh examination by the Tribunal. en-us Thu, 02 Feb 1995 00:00:00 +0530 Tue, 03 Nov 2009 10:39:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=18950 For surtax capital computation, the decisive question is whether the debenture redemption reserve was a reserve or a provision. An amount set aside to meet a known or existing liability is a provision and is excluded from capital, while an amount appropriated from profits for future use may qualify as a reserve if it is not earmarked for a current liability. The label used is not determinative; the true nature of the fund controls. On the available record, the exact character of the debenture redemption reserve and the basis of its creation were unclear, so the matter required fresh examination by the Tribunal. Case-Laws Income Tax Thu, 02 Feb 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=18950