https://www.taxtmi.com/caselaws?id=27676 General reserves standing to the credit of the company on the first day of the previous year were not reduced in surtax capital computation merely because they were later capitalised for bonus shares, since no present liability or provision arose until shareholder approval; the reserves retained their character on the relevant valuation date. The reserve for bad and doubtful debts was also treated as a reserve, not a provision, because it was carried separately for years, actual bad debts were written off as they arose, and it did not meet any known existing liability, contingency, or diminution in asset value at the balance-sheet date. The reference was therefore answered substantially for the assessee. en-us Mon, 27 Feb 1984 00:00:00 +0530 Mon, 15 Feb 2010 13:15:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27676 General reserves standing to the credit of the company on the first day of the previous year were not reduced in surtax capital computation merely because they were later capitalised for bonus shares, since no present liability or provision arose until shareholder approval; the reserves retained their character on the relevant valuation date. The reserve for bad and doubtful debts was also treated as a reserve, not a provision, because it was carried separately for years, actual bad debts were written off as they arose, and it did not meet any known existing liability, contingency, or diminution in asset value at the balance-sheet date. The reference was therefore answered substantially for the assessee. Case-Laws Income Tax Mon, 27 Feb 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27676