https://www.taxtmi.com/caselaws?id=25611 For surtax capital computation under the Companies (Profits) Surtax Act, the true character of an appropriation prevails over its balance-sheet label. An amount set apart for unknown contingencies, with no ascertained or contingent liability existing against it, is a reserve if it remains available to the company during the accounting year and is not earmarked to meet any liability. The statutory explanation does not bar examination of substance. On that reasoning, the sum shown as provision for contingencies was treated as a reserve and included in capital computation in favour of the assessee. en-us Thu, 11 Sep 1986 00:00:00 +0530 Fri, 29 Jan 2010 17:02:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25611 For surtax capital computation under the Companies (Profits) Surtax Act, the true character of an appropriation prevails over its balance-sheet label. An amount set apart for unknown contingencies, with no ascertained or contingent liability existing against it, is a reserve if it remains available to the company during the accounting year and is not earmarked to meet any liability. The statutory explanation does not bar examination of substance. On that reasoning, the sum shown as provision for contingencies was treated as a reserve and included in capital computation in favour of the assessee. Case-Laws Income Tax Thu, 11 Sep 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25611