https://www.taxtmi.com/caselaws?id=28816 An appropriation out of profits is treated as a reserve, not a provision, where it is not earmarked to meet any liability or contingency known to exist on the balance-sheet date. Applied to an amount set apart for loss on future contracts, the court noted that no present liability or known contingency existed and that the sum was retained only for a possible future contingency. The balance-sheet presentation did not change its character. The amount was therefore a reserve includible in capital computation, and it was not a provision against anticipated losses and contingencies. en-us Mon, 24 May 1982 00:00:00 +0530 Fri, 26 Feb 2010 10:50:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28816 An appropriation out of profits is treated as a reserve, not a provision, where it is not earmarked to meet any liability or contingency known to exist on the balance-sheet date. Applied to an amount set apart for loss on future contracts, the court noted that no present liability or known contingency existed and that the sum was retained only for a possible future contingency. The balance-sheet presentation did not change its character. The amount was therefore a reserve includible in capital computation, and it was not a provision against anticipated losses and contingencies. Case-Laws Income Tax Mon, 24 May 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28816