https://www.taxtmi.com/caselaws?id=38896 Amounts transferred annually to a doubtful debt reserve on an ad hoc basis, without linkage to specific doubtful debts or a known liability, were treated as a reserve rather than a provision under the statutory meaning in the Companies Act. On that basis, such balances were includible in the company's capital for surtax computation. By contrast, the dividend reserve was treated as not includible in capital for the same computation. The discussion turns on the distinction between a reserve and a provision, especially where a balance is not created to meet depreciation, diminution in asset value, or an identified liability. en-us Thu, 29 Jul 1976 00:00:00 +0530 Sat, 10 Apr 2010 12:22:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38896 Amounts transferred annually to a doubtful debt reserve on an ad hoc basis, without linkage to specific doubtful debts or a known liability, were treated as a reserve rather than a provision under the statutory meaning in the Companies Act. On that basis, such balances were includible in the company's capital for surtax computation. By contrast, the dividend reserve was treated as not includible in capital for the same computation. The discussion turns on the distinction between a reserve and a provision, especially where a balance is not created to meet depreciation, diminution in asset value, or an identified liability. Case-Laws Income Tax Thu, 29 Jul 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38896