https://www.taxtmi.com/caselaws?id=36841 Amount appropriated before any enforceable statutory liability arose remained a reserve, not a provision, for computation of capital under rule 1 of the Second Schedule to the Companies (Profits) Surtax Act, 1964. The court held that a Bill alone creates no liability, contingent or otherwise, and that later retrospective enactment of the tax did not change the character of the earlier appropriation. The sum was therefore includible in capital as a reserve, and the issue was decided in favour of the assessee. en-us Mon, 20 Nov 1978 00:00:00 +0530 Wed, 24 Mar 2010 18:53:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36841 Amount appropriated before any enforceable statutory liability arose remained a reserve, not a provision, for computation of capital under rule 1 of the Second Schedule to the Companies (Profits) Surtax Act, 1964. The court held that a Bill alone creates no liability, contingent or otherwise, and that later retrospective enactment of the tax did not change the character of the earlier appropriation. The sum was therefore includible in capital as a reserve, and the issue was decided in favour of the assessee. Case-Laws Income Tax Mon, 20 Nov 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36841