https://www.taxtmi.com/caselaws?id=20844 Debenture redemption reserve created out of profits and kept apart for future redemption obligations, without being treated as a charge on revenue, was characterised as a reserve and not a provision. Because the redemption payments were met from funds other than the reserve and the amount was maintained to conserve working capital and prevent reduction of capital, it qualified for inclusion in capital computation under the Second Schedule to the Companies (Profits) Surtax Act, 1964. The legal effect was that the reserve was includible in the capital base, and the issue was answered in the affirmative. en-us Wed, 25 Sep 1991 00:00:00 +0530 Tue, 17 Nov 2009 15:34:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20844 Debenture redemption reserve created out of profits and kept apart for future redemption obligations, without being treated as a charge on revenue, was characterised as a reserve and not a provision. Because the redemption payments were met from funds other than the reserve and the amount was maintained to conserve working capital and prevent reduction of capital, it qualified for inclusion in capital computation under the Second Schedule to the Companies (Profits) Surtax Act, 1964. The legal effect was that the reserve was includible in the capital base, and the issue was answered in the affirmative. Case-Laws Income Tax Wed, 25 Sep 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20844