https://www.taxtmi.com/caselaws?id=24847 Leave or retirement gratuity amounts were analysed for capital computation under the Companies (Profits) Surtax Act, 1964, with the key distinction being whether the credit was a provision for a known liability or a reserve. The governing principle treated gratuity as a known liability: an actuarially valued appropriation is a provision, and even an ad hoc appropriation may be a provision if intended to meet that liability; only any excess over the estimated liability is a reserve. Because the relevant assessment years had not been examined on that basis, the text states that the matter was remanded for fresh determination under the Supreme Court's principles. en-us Wed, 28 Oct 1987 00:00:00 +0530 Fri, 22 Jan 2010 17:05:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=24847 Leave or retirement gratuity amounts were analysed for capital computation under the Companies (Profits) Surtax Act, 1964, with the key distinction being whether the credit was a provision for a known liability or a reserve. The governing principle treated gratuity as a known liability: an actuarially valued appropriation is a provision, and even an ad hoc appropriation may be a provision if intended to meet that liability; only any excess over the estimated liability is a reserve. Because the relevant assessment years had not been examined on that basis, the text states that the matter was remanded for fresh determination under the Supreme Court's principles. Case-Laws Income Tax Wed, 28 Oct 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=24847