https://www.taxtmi.com/caselaws?id=39631 For capital computation under rule 1 of the Second Schedule to the Super Profits Tax Act, a provision for taxation is not a reserve to the extent it covers an accrued tax liability, because a reserve is an amount set apart for future use and a provision meets a known liability. Any excess in the taxation provision over the liability actually accrued may, however, qualify as a reserve if retained for future use. Amounts shown as proposed dividends do not constitute a reserve, whether or not formal appropriation has been made, because they are earmarked for shareholder payment and not for the company's future use. en-us Fri, 04 Apr 1975 00:00:00 +0530 Mon, 19 Apr 2010 12:12:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39631 For capital computation under rule 1 of the Second Schedule to the Super Profits Tax Act, a provision for taxation is not a reserve to the extent it covers an accrued tax liability, because a reserve is an amount set apart for future use and a provision meets a known liability. Any excess in the taxation provision over the liability actually accrued may, however, qualify as a reserve if retained for future use. Amounts shown as proposed dividends do not constitute a reserve, whether or not formal appropriation has been made, because they are earmarked for shareholder payment and not for the company's future use. Case-Laws Income Tax Fri, 04 Apr 1975 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39631