https://www.taxtmi.com/caselaws?id=285456 A credit balance standing in a company's profit and loss account on the first day of the chargeable accounting period was not a reserve for capital computation under Rule 2 of Schedule II of the Business Profits Tax Act, 1947. The term "reserves" was given its technical meaning, and an amount is not treated as reserve merely because it appears in the profit and loss account. As no formal appropriation to reserve had been made, and the balance-sheet and directors' report described the amount as surplus profits or balance of profit and loss account, it could not be included in capital. The answer was against the assessee and in favour of the Revenue. en-us Tue, 31 Mar 1953 00:00:00 +0530 Mon, 13 Jan 2020 14:14:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=285456 A credit balance standing in a company's profit and loss account on the first day of the chargeable accounting period was not a reserve for capital computation under Rule 2 of Schedule II of the Business Profits Tax Act, 1947. The term "reserves" was given its technical meaning, and an amount is not treated as reserve merely because it appears in the profit and loss account. As no formal appropriation to reserve had been made, and the balance-sheet and directors' report described the amount as surplus profits or balance of profit and loss account, it could not be included in capital. The answer was against the assessee and in favour of the Revenue. Case-Laws Income Tax Tue, 31 Mar 1953 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=285456