https://www.taxtmi.com/caselaws?id=21849 Disputed central excise duty and sales tax liabilities shown only as contingent liabilities, and not acknowledged as debts or claimed as deductions in the accounts or income-tax assessment, were held not to be ascertained liabilities for capital computation under the Companies (Profits) Surtax Act, 1964. Applying Rule 1A of the Second Schedule, the court held that amounts not properly creditable as provision for taxation or otherwise not reasonably required to be credited could not reduce the capital base on the footing of an existing liability. The question was answered in favour of the assessee, and the liabilities were not deductible while computing capital base. en-us Wed, 13 Feb 1991 00:00:00 +0530 Wed, 02 Dec 2009 11:55:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=21849 Disputed central excise duty and sales tax liabilities shown only as contingent liabilities, and not acknowledged as debts or claimed as deductions in the accounts or income-tax assessment, were held not to be ascertained liabilities for capital computation under the Companies (Profits) Surtax Act, 1964. Applying Rule 1A of the Second Schedule, the court held that amounts not properly creditable as provision for taxation or otherwise not reasonably required to be credited could not reduce the capital base on the footing of an existing liability. The question was answered in favour of the assessee, and the liabilities were not deductible while computing capital base. Case-Laws Income Tax Wed, 13 Feb 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=21849