https://www.taxtmi.com/caselaws?id=35651 Amounts set apart from profits are treated as reserves, and therefore included in capital for standard deduction under the Super Profits Tax Act, 1963, when they are not intended to meet a known or existing liability. On that basis, provision for staff gratuity, provision for contingencies, and provision for freight, rebate, and similar items were held to be reserves and includible in capital. By contrast, proposed dividend was earmarked to satisfy a liability out of profits and was treated as a provision, not a reserve, so it was excluded from capital computation. The reference was thus answered partly for the assessee and partly for the revenue. en-us Mon, 24 Aug 1981 00:00:00 +0530 Mon, 15 Mar 2010 17:37:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=35651 Amounts set apart from profits are treated as reserves, and therefore included in capital for standard deduction under the Super Profits Tax Act, 1963, when they are not intended to meet a known or existing liability. On that basis, provision for staff gratuity, provision for contingencies, and provision for freight, rebate, and similar items were held to be reserves and includible in capital. By contrast, proposed dividend was earmarked to satisfy a liability out of profits and was treated as a provision, not a reserve, so it was excluded from capital computation. The reference was thus answered partly for the assessee and partly for the revenue. Case-Laws Income Tax Mon, 24 Aug 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=35651