https://www.taxtmi.com/caselaws?id=29630 For capital computation under the Super Profits Tax Act, reserves must be assessed by substance on the relevant valuation date, not merely by the figure shown in accounts. An amount is not a reserve if the company's balance-sheet shows it has been adjusted against losses and is no longer retained for future use. The correct capital base is therefore the reduced balance-sheet figure after loss adjustment, because only amounts truly earmarked and preserved for future use qualify as reserves. en-us Tue, 03 Mar 1981 00:00:00 +0530 Mon, 15 Mar 2010 12:10:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=29630 For capital computation under the Super Profits Tax Act, reserves must be assessed by substance on the relevant valuation date, not merely by the figure shown in accounts. An amount is not a reserve if the company's balance-sheet shows it has been adjusted against losses and is no longer retained for future use. The correct capital base is therefore the reduced balance-sheet figure after loss adjustment, because only amounts truly earmarked and preserved for future use qualify as reserves. Case-Laws Income Tax Tue, 03 Mar 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=29630