https://www.taxtmi.com/caselaws?id=28928 Amounts set aside from profits to meet an existing customs duty liability, a tax liability arising at year-end, or expected diminution in the value of trade-mark rights are provisions and not reserves under rule 1 of the Second Schedule to the Super Profits Tax Act, 1963. Where the liability already exists, even if the exact amount is not finally quantified, the appropriation cannot be treated as capital reserve. Likewise, amounts earmarked for depreciation of a wasting asset are not reserves. On this reasoning, none of the three sums could be included in capital computation as reserves, and the reference was answered against the assessee. en-us Thu, 27 Nov 1980 00:00:00 +0530 Mon, 08 Mar 2010 16:55:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28928 Amounts set aside from profits to meet an existing customs duty liability, a tax liability arising at year-end, or expected diminution in the value of trade-mark rights are provisions and not reserves under rule 1 of the Second Schedule to the Super Profits Tax Act, 1963. Where the liability already exists, even if the exact amount is not finally quantified, the appropriation cannot be treated as capital reserve. Likewise, amounts earmarked for depreciation of a wasting asset are not reserves. On this reasoning, none of the three sums could be included in capital computation as reserves, and the reference was answered against the assessee. Case-Laws Income Tax Thu, 27 Nov 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28928