https://www.taxtmi.com/caselaws?id=38975 For surtax capital computation, an amount existing as an actual reserve on the first day of the previous year was includible even if shown later as a proposed addition. A reserve created for employees' indemnities was treated as a reserve, not a provision, because it related only to a possible future contingency and not a known liability on the relevant date. Excess development rebate reserve beyond the statutory requirement was also includible as an other reserve if not otherwise allowed in computing profits. The disputed amounts were therefore treated as part of capital. en-us Mon, 26 Jul 1976 00:00:00 +0530 Sat, 10 Apr 2010 17:08:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38975 For surtax capital computation, an amount existing as an actual reserve on the first day of the previous year was includible even if shown later as a proposed addition. A reserve created for employees' indemnities was treated as a reserve, not a provision, because it related only to a possible future contingency and not a known liability on the relevant date. Excess development rebate reserve beyond the statutory requirement was also includible as an other reserve if not otherwise allowed in computing profits. The disputed amounts were therefore treated as part of capital. Case-Laws Income Tax Mon, 26 Jul 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38975