https://www.taxtmi.com/caselaws?id=36404 For surtax capital computation, amounts set aside out of profits qualify as reserves only if they are not intended to meet a known liability, contingency, or commitment existing on the balance-sheet date and are clearly appropriated as such. Applying the substance of the entries and surrounding circumstances, sums described as reserve for pension and reserve for roofing repairs were treated as provisions because they were linked to existing liabilities and no clear intention to create free reserves was shown. Later description as reserves did not change their true character, so the amounts were excluded from capital computation. en-us Tue, 06 May 1980 00:00:00 +0530 Mon, 22 Mar 2010 11:37:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36404 For surtax capital computation, amounts set aside out of profits qualify as reserves only if they are not intended to meet a known liability, contingency, or commitment existing on the balance-sheet date and are clearly appropriated as such. Applying the substance of the entries and surrounding circumstances, sums described as reserve for pension and reserve for roofing repairs were treated as provisions because they were linked to existing liabilities and no clear intention to create free reserves was shown. Later description as reserves did not change their true character, so the amounts were excluded from capital computation. Case-Laws Income Tax Tue, 06 May 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36404