https://www.taxtmi.com/caselaws?id=29286 For capital computation under the Super Profits Tax Act, the character of a fund depends on its real substance, not its label. Amounts set apart for future business use may qualify as reserves even if created from profits, other surplus, or subject to statutory regulation, provided they are not merely provisions for existing known liabilities or impressed with an overriding title in favour of another. On the stated facts, the debenture sinking fund, replacement and contingencies fund, and contingency reserve were all treated as reserves because they were retained for business purposes, including debenture redemption, plant replacement, and other statutory business uses, and were includible in capital. en-us Mon, 02 Mar 1981 00:00:00 +0530 Fri, 12 Mar 2010 10:09:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=29286 For capital computation under the Super Profits Tax Act, the character of a fund depends on its real substance, not its label. Amounts set apart for future business use may qualify as reserves even if created from profits, other surplus, or subject to statutory regulation, provided they are not merely provisions for existing known liabilities or impressed with an overriding title in favour of another. On the stated facts, the debenture sinking fund, replacement and contingencies fund, and contingency reserve were all treated as reserves because they were retained for business purposes, including debenture redemption, plant replacement, and other statutory business uses, and were includible in capital. Case-Laws Income Tax Mon, 02 Mar 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=29286