https://www.taxtmi.com/caselaws?id=38839 Amounts retained to meet an accrued tax liability are provisions, not reserves, for capital computation under the Super Profits Tax Act, 1963, because they are earmarked for an existing liability even where the precise amount remains uncertain. Such tax provisions are therefore excluded from the reserve base. Amounts expressly set apart by directors for proposed dividend distribution likewise do not qualify as reserves, as they are not retained as working capital for the business; shareholder power to approve, vary, or reject the recommendation does not alter that character. Both tax provisions and proposed dividends remain outside capital computation. en-us Thu, 01 Jul 1976 00:00:00 +0530 Fri, 09 Apr 2010 16:30:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38839 Amounts retained to meet an accrued tax liability are provisions, not reserves, for capital computation under the Super Profits Tax Act, 1963, because they are earmarked for an existing liability even where the precise amount remains uncertain. Such tax provisions are therefore excluded from the reserve base. Amounts expressly set apart by directors for proposed dividend distribution likewise do not qualify as reserves, as they are not retained as working capital for the business; shareholder power to approve, vary, or reject the recommendation does not alter that character. Both tax provisions and proposed dividends remain outside capital computation. Case-Laws Income Tax Thu, 01 Jul 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38839