https://www.taxtmi.com/caselaws?id=20624 For surtax capital-base computation, amounts set apart as retirement gratuity were treated as provisions when created, and later transfer to general reserve did not alter that character; only the excess over actuarial liability could be treated as reserve. Rule 4 of the Second Schedule could not be used to proportionately reduce capital base merely because deductions were allowed under sections 80-I and 80L. Excess provision for taxation was deductible only to the extent of actual liability, while provision for contingencies relating to uncrystallised employee claims retained the character of reserve and was not deductible. The capital base was therefore to be computed by excluding only crystallised liabilities. en-us Fri, 06 Nov 1992 00:00:00 +0530 Mon, 16 Nov 2009 11:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20624 For surtax capital-base computation, amounts set apart as retirement gratuity were treated as provisions when created, and later transfer to general reserve did not alter that character; only the excess over actuarial liability could be treated as reserve. Rule 4 of the Second Schedule could not be used to proportionately reduce capital base merely because deductions were allowed under sections 80-I and 80L. Excess provision for taxation was deductible only to the extent of actual liability, while provision for contingencies relating to uncrystallised employee claims retained the character of reserve and was not deductible. The capital base was therefore to be computed by excluding only crystallised liabilities. Case-Laws Income Tax Fri, 06 Nov 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20624