https://www.taxtmi.com/caselaws?id=28955 A sum described as "gratuity reserve" was held to be a reserve, not a provision for a definite gratuity liability, where it was carried forward unchanged in the balance-sheet and had no correlation with any actual or estimated liability. On that basis, the amount was includible in the computation of capital under the relevant Second Schedules to the super profits tax and surtax enactments. The governing principle is that an ad hoc allocation for gratuity, without linkage to a quantified or reasonably estimated liability, is treated as a reserve for capital computation purposes. en-us Wed, 09 Sep 1981 00:00:00 +0530 Tue, 09 Mar 2010 10:36:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28955 A sum described as "gratuity reserve" was held to be a reserve, not a provision for a definite gratuity liability, where it was carried forward unchanged in the balance-sheet and had no correlation with any actual or estimated liability. On that basis, the amount was includible in the computation of capital under the relevant Second Schedules to the super profits tax and surtax enactments. The governing principle is that an ad hoc allocation for gratuity, without linkage to a quantified or reasonably estimated liability, is treated as a reserve for capital computation purposes. Case-Laws Income Tax Wed, 09 Sep 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28955