https://www.taxtmi.com/caselaws?id=38590 Under the Companies (Profits) Surtax Act, an amount retrospectively appropriated to meet a known surtax liability was treated as a provision, not a reserve, and was therefore excluded from the capital base. By contrast, a loan repayable under instalments so that the final contractual repayment date fell after not less than seven years from borrowing satisfied the proviso to rule 1(v), and a default clause did not alter that position unless triggered. The surtax reserve was excluded, while the full loan amount qualified for inclusion in the capital base. en-us Fri, 18 Jul 1975 00:00:00 +0530 Wed, 07 Apr 2010 13:55:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38590 Under the Companies (Profits) Surtax Act, an amount retrospectively appropriated to meet a known surtax liability was treated as a provision, not a reserve, and was therefore excluded from the capital base. By contrast, a loan repayable under instalments so that the final contractual repayment date fell after not less than seven years from borrowing satisfied the proviso to rule 1(v), and a default clause did not alter that position unless triggered. The surtax reserve was excluded, while the full loan amount qualified for inclusion in the capital base. Case-Laws Income Tax Fri, 18 Jul 1975 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38590