https://www.taxtmi.com/caselaws?id=38141 Amounts set aside to meet known present liabilities are provisions, not reserves, for capital computation under Schedule II of the Super Profits Tax Act. A provision for income-tax liability was excluded from capital because tax was a present liability, even if later quantified. A gratuity provision was treated as a reserve because it was accumulated for a contingent liability arising on termination of employment and was includible in capital. A bonus provision was excluded because it reflected an agreed, present liability under an operative bonus formula and was not contingent. en-us Mon, 29 Nov 1976 00:00:00 +0530 Sat, 03 Apr 2010 13:38:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38141 Amounts set aside to meet known present liabilities are provisions, not reserves, for capital computation under Schedule II of the Super Profits Tax Act. A provision for income-tax liability was excluded from capital because tax was a present liability, even if later quantified. A gratuity provision was treated as a reserve because it was accumulated for a contingent liability arising on termination of employment and was includible in capital. A bonus provision was excluded because it reflected an agreed, present liability under an operative bonus formula and was not contingent. Case-Laws Income Tax Mon, 29 Nov 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38141