https://www.taxtmi.com/caselaws?id=25451 For surtax computation, an amount set apart out of post-tax profits is a reserve if its true character is an appropriation of profits retained for future business use, rather than a mere provision. Applying that test, the excess depreciation provision was treated as a reserve because it was created over and above allowable depreciation, had been used earlier for replacing machinery, and did not fall within the excluded Schedule VI categories under the Explanation to Rule 1 of the Second Schedule to the Companies (Profits) Surtax Act, 1964. It was therefore includible in the capital base as an other reserve. en-us Tue, 24 Mar 1987 00:00:00 +0530 Thu, 28 Jan 2010 16:21:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25451 For surtax computation, an amount set apart out of post-tax profits is a reserve if its true character is an appropriation of profits retained for future business use, rather than a mere provision. Applying that test, the excess depreciation provision was treated as a reserve because it was created over and above allowable depreciation, had been used earlier for replacing machinery, and did not fall within the excluded Schedule VI categories under the Explanation to Rule 1 of the Second Schedule to the Companies (Profits) Surtax Act, 1964. It was therefore includible in the capital base as an other reserve. Case-Laws Income Tax Tue, 24 Mar 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25451