https://www.taxtmi.com/caselaws?id=22639 An amount transferred to a gratuity reserve account was held to be a provision, not a reserve, for surtax capital computation. The controlling distinction depends on the nature of the appropriation, its purpose, and the surrounding circumstances: an ad hoc amount set aside without actuarial valuation for a known gratuity liability is a charge against profits and remains a provision. Only an amount retained as part of the company's capital can qualify as a reserve. On that basis, the gratuity-related amount was excluded from capital computation. en-us Fri, 09 Nov 1990 00:00:00 +0530 Fri, 11 Dec 2009 16:35:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=22639 An amount transferred to a gratuity reserve account was held to be a provision, not a reserve, for surtax capital computation. The controlling distinction depends on the nature of the appropriation, its purpose, and the surrounding circumstances: an ad hoc amount set aside without actuarial valuation for a known gratuity liability is a charge against profits and remains a provision. Only an amount retained as part of the company's capital can qualify as a reserve. On that basis, the gratuity-related amount was excluded from capital computation. Case-Laws Income Tax Fri, 09 Nov 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=22639