https://www.taxtmi.com/caselaws?id=26066 Rectification under section 13 of the Companies (Profits) Surtax Act, 1964 was unavailable where the Income-tax Officer sought to reclassify amounts earlier accepted as reserves for debenture redemption and bad and doubtful debts as provisions. The commercial distinction between a provision and a reserve depends on whether the amount is set aside for an ascertained liability or appropriated from profits without meeting a known liability at the balance-sheet date. Because the issue involved a debatable reappraisal and not an obvious error, no mistake apparent from the record was established, and rectification could not be sustained. en-us Wed, 11 Sep 1985 00:00:00 +0530 Tue, 02 Feb 2010 15:36:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26066 Rectification under section 13 of the Companies (Profits) Surtax Act, 1964 was unavailable where the Income-tax Officer sought to reclassify amounts earlier accepted as reserves for debenture redemption and bad and doubtful debts as provisions. The commercial distinction between a provision and a reserve depends on whether the amount is set aside for an ascertained liability or appropriated from profits without meeting a known liability at the balance-sheet date. Because the issue involved a debatable reappraisal and not an obvious error, no mistake apparent from the record was established, and rectification could not be sustained. Case-Laws Income Tax Wed, 11 Sep 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26066