https://www.taxtmi.com/caselaws?id=20347 For capital computation under the Super Profits Tax Act, amounts set aside for a known liability or proposed distribution are provisions, not reserves. A proposed dividend is an appropriation for payment and cannot be included in the capital base as a reserve. Provision for taxation is excluded to the extent it matches the existing tax liability, though any excess provision beyond the amount reasonably required may be treated as a reserve. Excess book depreciation over depreciation allowable under the Income-tax Act is likewise an amount retained out of profits and is includible as a reserve in the capital base. en-us Wed, 07 Oct 1992 00:00:00 +0530 Fri, 13 Nov 2009 13:49:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20347 For capital computation under the Super Profits Tax Act, amounts set aside for a known liability or proposed distribution are provisions, not reserves. A proposed dividend is an appropriation for payment and cannot be included in the capital base as a reserve. Provision for taxation is excluded to the extent it matches the existing tax liability, though any excess provision beyond the amount reasonably required may be treated as a reserve. Excess book depreciation over depreciation allowable under the Income-tax Act is likewise an amount retained out of profits and is includible as a reserve in the capital base. Case-Laws Income Tax Wed, 07 Oct 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20347