https://www.taxtmi.com/caselaws?id=36197 For surtax capital computation, a specific provision made against identified doubtful debts was treated as a provision for an ascertainable liability, not a reserve, and was excluded from capital. By contrast, ad hoc transfers to the bad and doubtful debt reserve account were treated as reserves because they were appropriations out of profits for future use, and the retirement gratuity amount was also accepted as a reserve because it was set apart for a contingent future liability and had not been allowed as a deduction in income-tax computation. The stock-reserve question was left open for fresh consideration. en-us Mon, 07 Jan 1980 00:00:00 +0530 Sat, 20 Mar 2010 10:28:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36197 For surtax capital computation, a specific provision made against identified doubtful debts was treated as a provision for an ascertainable liability, not a reserve, and was excluded from capital. By contrast, ad hoc transfers to the bad and doubtful debt reserve account were treated as reserves because they were appropriations out of profits for future use, and the retirement gratuity amount was also accepted as a reserve because it was set apart for a contingent future liability and had not been allowed as a deduction in income-tax computation. The stock-reserve question was left open for fresh consideration. Case-Laws Income Tax Mon, 07 Jan 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36197