https://www.taxtmi.com/caselaws?id=38868 Dividend equalisation reserve was treated as a reserve, not a provision, for capital computation under the super profits tax or surtax framework. The statutory scheme and balance-sheet classification under the Companies Act distinguished reserves, being appropriations of profits kept for future use, from provisions made for known liabilities, contingencies, or commitments. Applying that commercial-accountancy distinction and Supreme Court authority, the amount credited to dividend equalisation reserve was not a charge against profits for a known liability. It was therefore includible in the capital computation for the relevant tax assessments in favour of the assessee. en-us Fri, 26 Nov 1976 00:00:00 +0530 Sat, 10 Apr 2010 10:46:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38868 Dividend equalisation reserve was treated as a reserve, not a provision, for capital computation under the super profits tax or surtax framework. The statutory scheme and balance-sheet classification under the Companies Act distinguished reserves, being appropriations of profits kept for future use, from provisions made for known liabilities, contingencies, or commitments. Applying that commercial-accountancy distinction and Supreme Court authority, the amount credited to dividend equalisation reserve was not a charge against profits for a known liability. It was therefore includible in the capital computation for the relevant tax assessments in favour of the assessee. Case-Laws Income Tax Fri, 26 Nov 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38868