https://www.taxtmi.com/caselaws?id=21598 For surtax capital computation under rule 1 of Schedule II to the Companies (Profits) Surtax Act, only amounts that genuinely retain the character of reserve are includible. The disputed Rs. 26,00,000 out of general reserves was excluded from the capital base, while the undisputed balance remained includible. The reserve for doubtful debts of Rs. 40,732 was treated as includible for capital computation, the point being governed by the assessee's earlier case. The overall position is that reserve classification must be tested by the applicable legal character of the item, not by its label alone. en-us Wed, 20 Feb 1991 00:00:00 +0530 Wed, 25 Nov 2009 16:38:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=21598 For surtax capital computation under rule 1 of Schedule II to the Companies (Profits) Surtax Act, only amounts that genuinely retain the character of reserve are includible. The disputed Rs. 26,00,000 out of general reserves was excluded from the capital base, while the undisputed balance remained includible. The reserve for doubtful debts of Rs. 40,732 was treated as includible for capital computation, the point being governed by the assessee's earlier case. The overall position is that reserve classification must be tested by the applicable legal character of the item, not by its label alone. Case-Laws Income Tax Wed, 20 Feb 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=21598