https://www.taxtmi.com/caselaws?id=26247 Amounts set aside on a scientific basis to reflect a known and existing gratuity liability were treated as a provision, not a reserve, for surtax capital base computation. Applying the Supreme Court distinction between "provision" and "reserve", the High Court noted that an appropriation made to meet a fairly accurately estimated liability cannot be included as reserve in the capital base. On that reasoning, the Tribunal's contrary view was held unsustainable and the reference was answered in favour of the Revenue. en-us Mon, 07 Oct 1985 00:00:00 +0530 Wed, 03 Feb 2010 16:44:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26247 Amounts set aside on a scientific basis to reflect a known and existing gratuity liability were treated as a provision, not a reserve, for surtax capital base computation. Applying the Supreme Court distinction between "provision" and "reserve", the High Court noted that an appropriation made to meet a fairly accurately estimated liability cannot be included as reserve in the capital base. On that reasoning, the Tribunal's contrary view was held unsustainable and the reference was answered in favour of the Revenue. Case-Laws Income Tax Mon, 07 Oct 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26247