https://www.taxtmi.com/caselaws?id=35836 Amounts appropriated as doubtful debts reserve, retirement gratuity reserve and contingency reserve were treated as reserves, not provisions, because they were not earmarked to meet any known existing liability at the balance-sheet date; they were therefore includible in capital for surtax computation. The issue of bonus shares was also held to enlarge paid-up capital, so the proportionate increase had to be included in the capital base for surtax purposes. Both questions were answered in favour of the assessee. en-us Tue, 07 Apr 1981 00:00:00 +0530 Wed, 17 Mar 2010 10:58:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=35836 Amounts appropriated as doubtful debts reserve, retirement gratuity reserve and contingency reserve were treated as reserves, not provisions, because they were not earmarked to meet any known existing liability at the balance-sheet date; they were therefore includible in capital for surtax computation. The issue of bonus shares was also held to enlarge paid-up capital, so the proportionate increase had to be included in the capital base for surtax purposes. Both questions were answered in favour of the assessee. Case-Laws Income Tax Tue, 07 Apr 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=35836