https://www.taxtmi.com/caselaws?id=38581 For capital computation under the Super Profits Tax Act, a reserve requires a clear appropriation of profits for future use, while amounts set aside for known or accrued liabilities are provisions. On that principle, proposed dividend remained part of undistributed profits and did not qualify as a reserve. Provision for taxation and provision for bonus, being made to meet existing liabilities, also could not be treated as reserves under rule 1 of the Second Schedule. The deduction issue was treated as covered by the assessee's own earlier reference, and the restriction on the annual deduction was not sustained. en-us Tue, 11 Sep 1973 00:00:00 +0530 Wed, 07 Apr 2010 13:32:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38581 For capital computation under the Super Profits Tax Act, a reserve requires a clear appropriation of profits for future use, while amounts set aside for known or accrued liabilities are provisions. On that principle, proposed dividend remained part of undistributed profits and did not qualify as a reserve. Provision for taxation and provision for bonus, being made to meet existing liabilities, also could not be treated as reserves under rule 1 of the Second Schedule. The deduction issue was treated as covered by the assessee's own earlier reference, and the restriction on the annual deduction was not sustained. Case-Laws Income Tax Tue, 11 Sep 1973 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38581