https://www.taxtmi.com/caselaws?id=24105 An amount already quantified as proposed dividend and earmarked to discharge a committed liability was a provision, not a reserve, so it was excluded from capital computation under the Second Schedule to the Companies (Profits) Surtax Act, 1964. By contrast, the staff welfare fund was set apart for employee benefit without evidence of any known present or future liability, so it qualified as a reserve and was includible in capital computation, subject to the applicable 20% deduction on the relevant balance. en-us Mon, 27 Feb 1989 00:00:00 +0530 Sat, 16 Jan 2010 16:37:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=24105 An amount already quantified as proposed dividend and earmarked to discharge a committed liability was a provision, not a reserve, so it was excluded from capital computation under the Second Schedule to the Companies (Profits) Surtax Act, 1964. By contrast, the staff welfare fund was set apart for employee benefit without evidence of any known present or future liability, so it qualified as a reserve and was includible in capital computation, subject to the applicable 20% deduction on the relevant balance. Case-Laws Income Tax Mon, 27 Feb 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=24105