https://www.taxtmi.com/caselaws?id=35737 For surtax capital computation, an amount set aside for an anticipated liability is a provision only to the extent of the reasonably estimated liability; any excess remains a reserve. The additional depreciation reserve of Rs. 8,30,716 was treated as reserve because it was created for replacement needs and not as an accrued liability, so it was includible in capital. The additional taxation reserve of Rs. 13 lakhs was partly provision and partly reserve: the reasonably estimated super profits tax liability was accepted at Rs. 8 1/2 lakhs, and only the excess over that figure qualified as reserve for inclusion in capital. en-us Wed, 24 Dec 1980 00:00:00 +0530 Tue, 16 Mar 2010 13:38:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=35737 For surtax capital computation, an amount set aside for an anticipated liability is a provision only to the extent of the reasonably estimated liability; any excess remains a reserve. The additional depreciation reserve of Rs. 8,30,716 was treated as reserve because it was created for replacement needs and not as an accrued liability, so it was includible in capital. The additional taxation reserve of Rs. 13 lakhs was partly provision and partly reserve: the reasonably estimated super profits tax liability was accepted at Rs. 8 1/2 lakhs, and only the excess over that figure qualified as reserve for inclusion in capital. Case-Laws Income Tax Wed, 24 Dec 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=35737