https://www.taxtmi.com/caselaws?id=26912 A contingency reserve created under the Electricity (Supply) Act, 1948 for general future contingencies was held to be a reserve, not a provision, because it was not earmarked for any known liability or specific existing expenditure. Applying the distinction between a reserve and a provision, the court treated the amount as available for general contingencies permitted by the Sixth Schedule and therefore includible in capital computation under the Second Schedule to the Companies (Profits) Surtax Act, 1964. The assessee succeeded on that issue. en-us Wed, 15 May 1985 00:00:00 +0530 Tue, 09 Feb 2010 12:37:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26912 A contingency reserve created under the Electricity (Supply) Act, 1948 for general future contingencies was held to be a reserve, not a provision, because it was not earmarked for any known liability or specific existing expenditure. Applying the distinction between a reserve and a provision, the court treated the amount as available for general contingencies permitted by the Sixth Schedule and therefore includible in capital computation under the Second Schedule to the Companies (Profits) Surtax Act, 1964. The assessee succeeded on that issue. Case-Laws Income Tax Wed, 15 May 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26912