https://www.taxtmi.com/caselaws?id=28224 For surtax capital computation under the Second Schedule to the Companies (Profits) Surtax Act, 1964, only a consciously created reserve qualifies; a mere provision, a notional depreciation difference, or a temporary bad-debts account later carried back to profit and loss does not. The notional difference arising between book value and written-down value was held not to be a reserve, and the bad-debts provision was likewise excluded from the capital base. The gratuity provision required further factual scrutiny because the record did not show whether it represented an actuarially determined liability or any excess over such liability, so that issue was remitted for fresh examination. en-us Mon, 17 Jan 1983 00:00:00 +0530 Fri, 19 Feb 2010 17:31:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28224 For surtax capital computation under the Second Schedule to the Companies (Profits) Surtax Act, 1964, only a consciously created reserve qualifies; a mere provision, a notional depreciation difference, or a temporary bad-debts account later carried back to profit and loss does not. The notional difference arising between book value and written-down value was held not to be a reserve, and the bad-debts provision was likewise excluded from the capital base. The gratuity provision required further factual scrutiny because the record did not show whether it represented an actuarially determined liability or any excess over such liability, so that issue was remitted for fresh examination. Case-Laws Income Tax Mon, 17 Jan 1983 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28224