https://www.taxtmi.com/caselaws?id=286285 An amount set apart to meet an existing loan repayment liability is a provision, not a reserve, for surtax capital computation under the Companies (Profits) Surtax Act, 1964. The label used in the accounts is not decisive; the true character depends on substance, purpose, and surrounding circumstances. Here, funds earmarked for loan redemption were directed to discharge a liability rather than create capital available as a reserve, so they were not includible in capital. The assessee therefore failed on the classification issue, and the amount was treated as a provision. en-us Thu, 07 Dec 2000 00:00:00 +0530 Wed, 19 Feb 2020 14:48:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=286285 An amount set apart to meet an existing loan repayment liability is a provision, not a reserve, for surtax capital computation under the Companies (Profits) Surtax Act, 1964. The label used in the accounts is not decisive; the true character depends on substance, purpose, and surrounding circumstances. Here, funds earmarked for loan redemption were directed to discharge a liability rather than create capital available as a reserve, so they were not includible in capital. The assessee therefore failed on the classification issue, and the amount was treated as a provision. Case-Laws Income Tax Thu, 07 Dec 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=286285