https://www.taxtmi.com/caselaws?id=37940 Reserves not earmarked for an ascertained existing liability and available for general corporate use were treated as free reserves and included in capital under rule 1 of Schedule II of the Companies (Profits) Surtax Act, 1964. Replanting, building and machinery reserve were not appropriated against any existing liability and had been absorbed into general reserve; the tax contingency reserve was created for possible future contingencies, not a present tax liability; and the pension reserve was not debited against an accrued liability and was ultimately transferred to general reserve for dividends. On that basis, the disputed reserves formed part of capital. en-us Wed, 02 Feb 1977 00:00:00 +0530 Fri, 02 Apr 2010 12:31:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37940 Reserves not earmarked for an ascertained existing liability and available for general corporate use were treated as free reserves and included in capital under rule 1 of Schedule II of the Companies (Profits) Surtax Act, 1964. Replanting, building and machinery reserve were not appropriated against any existing liability and had been absorbed into general reserve; the tax contingency reserve was created for possible future contingencies, not a present tax liability; and the pension reserve was not debited against an accrued liability and was ultimately transferred to general reserve for dividends. On that basis, the disputed reserves formed part of capital. Case-Laws Income Tax Wed, 02 Feb 1977 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37940