https://www.taxtmi.com/caselaws?id=24346 Provision for taxation and gratuity reserve are not treated as reserves in full for capital computation under rule 1 of the Second Schedule to the Super Profits Tax Act, 1963; only the excess, if any, over the actual liability can qualify as reserve. The Bombay HC applied the excess-liability test and held that the available record did not permit ascertainment of the actual liabilities. The matter was therefore remitted to the Tribunal to determine whether either item exceeded the corresponding liability and, if so, to include only that excess in the capital base. en-us Thu, 17 Nov 1988 00:00:00 +0530 Tue, 19 Jan 2010 13:38:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=24346 Provision for taxation and gratuity reserve are not treated as reserves in full for capital computation under rule 1 of the Second Schedule to the Super Profits Tax Act, 1963; only the excess, if any, over the actual liability can qualify as reserve. The Bombay HC applied the excess-liability test and held that the available record did not permit ascertainment of the actual liabilities. The matter was therefore remitted to the Tribunal to determine whether either item exceeded the corresponding liability and, if so, to include only that excess in the capital base. Case-Laws Income Tax Thu, 17 Nov 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=24346