https://www.taxtmi.com/caselaws?id=28998 For surtax capital computation, an appropriation to general reserve made after the accounting year opened was treated as effective from the start of the year and included in capital. Excess reserve created beyond the statutory requirement was treated as falling within "other reserves" under the Second Schedule to the Companies (Profits) Surtax Act, 1964. The amount credited to gratuity reserve was treated as a reserve, not a provision, because its true character depended on the nature of the appropriation and there was no actuarial valuation of a known liability. On each issue, the amounts were included in capital. en-us Sat, 29 Aug 1981 00:00:00 +0530 Wed, 10 Mar 2010 10:45:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28998 For surtax capital computation, an appropriation to general reserve made after the accounting year opened was treated as effective from the start of the year and included in capital. Excess reserve created beyond the statutory requirement was treated as falling within "other reserves" under the Second Schedule to the Companies (Profits) Surtax Act, 1964. The amount credited to gratuity reserve was treated as a reserve, not a provision, because its true character depended on the nature of the appropriation and there was no actuarial valuation of a known liability. On each issue, the amounts were included in capital. Case-Laws Income Tax Sat, 29 Aug 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28998