https://www.taxtmi.com/caselaws?id=285455 For capital computation under the Business Profits Tax Act, only reserves actually existing on the relevant date could be taken into account. Tax paid out of separate unappropriated funds could not be treated as a reduction of the taxation reserve merely because it appeared on the debit side of the balance-sheet, since it was not drawn from that reserve. Advance income-tax payments under section 18A of the Income-tax Act were provisional payments against an uncrystallised liability and, on the facts stated, could not be deducted from the taxation reserve. The result was that the reserve remained intact for capital computation purposes, and provisional tax payments were excluded from such adjustment. en-us Sun, 25 Aug 1963 00:00:00 +0530 Mon, 13 Jan 2020 14:08:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=285455 For capital computation under the Business Profits Tax Act, only reserves actually existing on the relevant date could be taken into account. Tax paid out of separate unappropriated funds could not be treated as a reduction of the taxation reserve merely because it appeared on the debit side of the balance-sheet, since it was not drawn from that reserve. Advance income-tax payments under section 18A of the Income-tax Act were provisional payments against an uncrystallised liability and, on the facts stated, could not be deducted from the taxation reserve. The result was that the reserve remained intact for capital computation purposes, and provisional tax payments were excluded from such adjustment. Case-Laws Income Tax Sun, 25 Aug 1963 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=285455