https://www.taxtmi.com/caselaws?id=35741 In computing capital base under the Second Schedule to the Super Profits Tax Act, amounts are classified by substance and a commercial, common-sense test: sums available for future business use are reserves, while sums earmarked for known or immediate liabilities are provisions. The additional depreciation reserve was treated as a reserve and included in the capital base. The provision for taxation was treated as a liability, not a reserve, because it was not shown to be an excess provision. The provision for gratuity and proposed dividend were both regarded as sums set apart for immediate obligations and were excluded from the capital base. en-us Tue, 24 Feb 1981 00:00:00 +0530 Tue, 16 Mar 2010 13:47:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=35741 In computing capital base under the Second Schedule to the Super Profits Tax Act, amounts are classified by substance and a commercial, common-sense test: sums available for future business use are reserves, while sums earmarked for known or immediate liabilities are provisions. The additional depreciation reserve was treated as a reserve and included in the capital base. The provision for taxation was treated as a liability, not a reserve, because it was not shown to be an excess provision. The provision for gratuity and proposed dividend were both regarded as sums set apart for immediate obligations and were excluded from the capital base. Case-Laws Income Tax Tue, 24 Feb 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=35741