https://www.taxtmi.com/caselaws?id=22327 For surtax capital computation under the Second Schedule to the Companies (Profits) Surtax Act, 1964, amounts set apart for engine inspection, warranty and technical fees were held to be reserves, not provisions or current liabilities, because the decisive test was their true character as sums earmarked for a specific future purpose. The company-law distinction between reserve and provision was not controlling for rule 1 of the Second Schedule. On that basis, the amounts were excluded from current liabilities and the issue was decided in favour of the assessee. The reference was otherwise answered against the Revenue on the dividend depletion issue, producing a mixed overall result. en-us Tue, 19 Mar 1991 00:00:00 +0530 Wed, 09 Dec 2009 12:04:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=22327 For surtax capital computation under the Second Schedule to the Companies (Profits) Surtax Act, 1964, amounts set apart for engine inspection, warranty and technical fees were held to be reserves, not provisions or current liabilities, because the decisive test was their true character as sums earmarked for a specific future purpose. The company-law distinction between reserve and provision was not controlling for rule 1 of the Second Schedule. On that basis, the amounts were excluded from current liabilities and the issue was decided in favour of the assessee. The reference was otherwise answered against the Revenue on the dividend depletion issue, producing a mixed overall result. Case-Laws Income Tax Tue, 19 Mar 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=22327