https://www.taxtmi.com/caselaws?id=23619 A plant replacement fund credited through the profit and loss appropriation account and later transferred to general reserve was held to be a reserve, not a provision, because it was not earmarked for any specific machinery and no accrued liability for replacement had yet arisen. Applying the distinction between a contingent future contingency and an existing liability, the court treated the amount as part of capital for surtax computation. The question was answered in favour of the assessee and against the Department. en-us Thu, 22 Sep 1988 00:00:00 +0530 Tue, 22 Dec 2009 16:54:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=23619 A plant replacement fund credited through the profit and loss appropriation account and later transferred to general reserve was held to be a reserve, not a provision, because it was not earmarked for any specific machinery and no accrued liability for replacement had yet arisen. Applying the distinction between a contingent future contingency and an existing liability, the court treated the amount as part of capital for surtax computation. The question was answered in favour of the assessee and against the Department. Case-Laws Income Tax Thu, 22 Sep 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=23619