https://www.taxtmi.com/caselaws?id=36269 Amounts appropriated for taxation and proposed dividend were treated as provisions for existing liabilities, not reserves, and were therefore excluded from capital computation for standard deduction under the Super Profits Tax Act, 1963. The distinction between reserve and provision depended on whether the sum was earmarked to meet a known liability, contingency, commitment, or diminution in asset value existing at the balance-sheet date. By contrast, an amount shown as provision for contingencies, where no specific known contingent liability was identified, retained the character of a reserve and was includible in capital. en-us Tue, 22 Apr 1980 00:00:00 +0530 Sat, 20 Mar 2010 13:25:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36269 Amounts appropriated for taxation and proposed dividend were treated as provisions for existing liabilities, not reserves, and were therefore excluded from capital computation for standard deduction under the Super Profits Tax Act, 1963. The distinction between reserve and provision depended on whether the sum was earmarked to meet a known liability, contingency, commitment, or diminution in asset value existing at the balance-sheet date. By contrast, an amount shown as provision for contingencies, where no specific known contingent liability was identified, retained the character of a reserve and was includible in capital. Case-Laws Income Tax Tue, 22 Apr 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36269