https://www.taxtmi.com/caselaws?id=21697 Amounts set apart out of profits for future debenture redemption are treated as a reserve, not a provision, where the liability has not yet arisen on the balance-sheet date. Applying the distinction laid down in Vazir Sultan and related authorities, the court held that a liability to redeem debentures was not a current charge on the relevant accounting year's profits. The debenture redemption fund therefore retained the character of capital employed in the business and was includible in the capital base for surtax purposes, with the issue answered in favour of the assessee. en-us Fri, 29 May 1992 00:00:00 +0530 Thu, 26 Nov 2009 18:34:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=21697 Amounts set apart out of profits for future debenture redemption are treated as a reserve, not a provision, where the liability has not yet arisen on the balance-sheet date. Applying the distinction laid down in Vazir Sultan and related authorities, the court held that a liability to redeem debentures was not a current charge on the relevant accounting year's profits. The debenture redemption fund therefore retained the character of capital employed in the business and was includible in the capital base for surtax purposes, with the issue answered in favour of the assessee. Case-Laws Income Tax Fri, 29 May 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=21697