https://www.taxtmi.com/caselaws?id=26460 A surplus standing to the credit of the profit and loss account is not a reserve unless it is clearly separated from profits and earmarked for a specific future purpose by competent authority; on that basis, the surplus was excluded from capital computation under the Super Profits Tax Act, 1963. A provision for taxation is not a reserve because it represents a known liability, and only a demonstrable excess over a scientifically estimated liability can be treated as such; since no such excess was established, the tax provision was also excluded. Both points were decided against the assessee. en-us Thu, 31 Oct 1985 00:00:00 +0530 Fri, 05 Feb 2010 11:43:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26460 A surplus standing to the credit of the profit and loss account is not a reserve unless it is clearly separated from profits and earmarked for a specific future purpose by competent authority; on that basis, the surplus was excluded from capital computation under the Super Profits Tax Act, 1963. A provision for taxation is not a reserve because it represents a known liability, and only a demonstrable excess over a scientifically estimated liability can be treated as such; since no such excess was established, the tax provision was also excluded. Both points were decided against the assessee. Case-Laws Income Tax Thu, 31 Oct 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26460