https://www.taxtmi.com/caselaws?id=38156 For rule 1 of the Second Schedule to the Super Profits Tax Act, 1963, "reserve" bears its ordinary commercial meaning: an amount set apart out of profits or surplus for future use and not earmarked against a known liability. A mere mass of undistributed profits is not enough, and the accounting distinction between reserve and provision is not conclusive where the statutory context points otherwise. On the facts, the taxation contingency reserve, the bonus provision and the provident institution long service bonus amount all related to uncertain or uncrystallised obligations, so they were treated as reserves and included in capital computation, subject to exclusion of any amount already allowed in income-tax assessment. en-us Wed, 25 Jan 1978 00:00:00 +0530 Sat, 03 Apr 2010 14:06:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38156 For rule 1 of the Second Schedule to the Super Profits Tax Act, 1963, "reserve" bears its ordinary commercial meaning: an amount set apart out of profits or surplus for future use and not earmarked against a known liability. A mere mass of undistributed profits is not enough, and the accounting distinction between reserve and provision is not conclusive where the statutory context points otherwise. On the facts, the taxation contingency reserve, the bonus provision and the provident institution long service bonus amount all related to uncertain or uncrystallised obligations, so they were treated as reserves and included in capital computation, subject to exclusion of any amount already allowed in income-tax assessment. Case-Laws Income Tax Wed, 25 Jan 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38156