https://www.taxtmi.com/caselaws?id=35676 Amounts credited to staff benefit reserve, self-insurance reserve and staff bonus reserve were examined under the Companies (Profits) Surtax Act, 1964 by reference to their real commercial character, not their labels. Discretionary staff benefit and self-insurance appropriations, made for possible future losses or employee benefits without an enforceable or crystallised liability, were treated as reserves rather than provisions. The bonus allocation was also held to be a reserve because any statutory bonus liability depended on future contingencies and had not become a known liability on the relevant balance-sheet dates. A "known liability" under Schedule VI was held wide enough to cover definitely probable liabilities, but not remote or merely possible contingencies. en-us Fri, 15 May 1981 00:00:00 +0530 Tue, 16 Mar 2010 10:32:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=35676 Amounts credited to staff benefit reserve, self-insurance reserve and staff bonus reserve were examined under the Companies (Profits) Surtax Act, 1964 by reference to their real commercial character, not their labels. Discretionary staff benefit and self-insurance appropriations, made for possible future losses or employee benefits without an enforceable or crystallised liability, were treated as reserves rather than provisions. The bonus allocation was also held to be a reserve because any statutory bonus liability depended on future contingencies and had not become a known liability on the relevant balance-sheet dates. A "known liability" under Schedule VI was held wide enough to cover definitely probable liabilities, but not remote or merely possible contingencies. Case-Laws Income Tax Fri, 15 May 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=35676