https://www.taxtmi.com/caselaws?id=37881 An amount shown as provision for labour retiring gratuity was held to retain the character of a reserve for capital computation under the Second Schedule to the Companies (Profits) Surtax Act, 1964. The Court applied the exclusionary Explanation to rule 1 and held that a balance-sheet description as "current liabilities and provisions" does not by itself exclude the item unless it falls within the specified statutory exclusions. It also was not a contingent liability capable of being ascertained with substantial accuracy. The amount was therefore includible in the capital computation. en-us Thu, 02 Feb 1978 00:00:00 +0530 Thu, 01 Apr 2010 15:44:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37881 An amount shown as provision for labour retiring gratuity was held to retain the character of a reserve for capital computation under the Second Schedule to the Companies (Profits) Surtax Act, 1964. The Court applied the exclusionary Explanation to rule 1 and held that a balance-sheet description as "current liabilities and provisions" does not by itself exclude the item unless it falls within the specified statutory exclusions. It also was not a contingent liability capable of being ascertained with substantial accuracy. The amount was therefore includible in the capital computation. Case-Laws Income Tax Thu, 02 Feb 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37881