https://www.taxtmi.com/caselaws?id=22356 Retiring gratuity transferred from a reserve head to general reserve does not lose its character for surtax capital computation; the real nature of the amount, not its later label, governs, and only any excess over actuarial liability is treated as reserve. Rule 4 of the Second Schedule was also held applicable in the assessee's favour for the capital base computation linked to the deduction claim, so the reduction could not be made in the manner proposed against the assessee. The governing principle is that reserve treatment depends on substantive accounting and liability position, not mere reclassification. en-us Fri, 22 Mar 1991 00:00:00 +0530 Wed, 09 Dec 2009 14:11:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=22356 Retiring gratuity transferred from a reserve head to general reserve does not lose its character for surtax capital computation; the real nature of the amount, not its later label, governs, and only any excess over actuarial liability is treated as reserve. Rule 4 of the Second Schedule was also held applicable in the assessee's favour for the capital base computation linked to the deduction claim, so the reduction could not be made in the manner proposed against the assessee. The governing principle is that reserve treatment depends on substantive accounting and liability position, not mere reclassification. Case-Laws Income Tax Fri, 22 Mar 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=22356