https://www.taxtmi.com/caselaws?id=19830 Gratuity reserve appropriations are included in capital employed for surtax only if they are truly reserves and not provisions for a known or contingent liability. An appropriation made on a scientific or actuarial basis to meet estimated gratuity liability is ordinarily a provision, while an ad hoc appropriation may be treated as a reserve only to the extent it exceeds the estimated liability. The record did not show whether the gratuity reserve was actuarially determined or merely ad hoc, so the governing principle could not be applied on the materials before the court and the matter was remitted for reconsideration. en-us Tue, 18 Jan 1994 00:00:00 +0530 Tue, 10 Nov 2009 10:19:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=19830 Gratuity reserve appropriations are included in capital employed for surtax only if they are truly reserves and not provisions for a known or contingent liability. An appropriation made on a scientific or actuarial basis to meet estimated gratuity liability is ordinarily a provision, while an ad hoc appropriation may be treated as a reserve only to the extent it exceeds the estimated liability. The record did not show whether the gratuity reserve was actuarially determined or merely ad hoc, so the governing principle could not be applied on the materials before the court and the matter was remitted for reconsideration. Case-Laws Income Tax Tue, 18 Jan 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=19830