https://www.taxtmi.com/caselaws?id=23221 For capital computation under the Surtax Act, a dividend reserve in respect of ordinary shares does not qualify as a reserve and is excluded from capital computation. A gratuity reserve is not wholly includible either; only the excess, if any, over the assessee's known or determinate liability in respect of gratuity can be treated as a reserve. The subject therefore turns on whether the amount set aside represents a true reserve or merely a provision for an ascertained liability, with dividend reserves excluded and gratuity reserves allowed only to the extent of any surplus over the established liability. en-us Wed, 14 Dec 1988 00:00:00 +0530 Thu, 17 Dec 2009 16:18:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=23221 For capital computation under the Surtax Act, a dividend reserve in respect of ordinary shares does not qualify as a reserve and is excluded from capital computation. A gratuity reserve is not wholly includible either; only the excess, if any, over the assessee's known or determinate liability in respect of gratuity can be treated as a reserve. The subject therefore turns on whether the amount set aside represents a true reserve or merely a provision for an ascertained liability, with dividend reserves excluded and gratuity reserves allowed only to the extent of any surplus over the established liability. Case-Laws Income Tax Wed, 14 Dec 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=23221