https://www.taxtmi.com/caselaws?id=40020 Amounts earmarked for taxation were treated as provisions, not reserves, because they met an accrued and known liability and were excluded from capital computation. Retirement gratuity appropriations required factual scrutiny: a scientifically or actuarially estimated liability may be a provision, while only any excess beyond the reasonably necessary amount can be treated as reserve, so the matter was remanded for reconsideration. Amounts set apart for proposed dividends were also treated as provisions rather than reserves, and dividends paid out of general reserve were excluded from the reserve figure, as past reserves are not ordinarily reduced absent clear indication to the contrary. en-us Fri, 25 Sep 1981 00:00:00 +0530 Mon, 04 Nov 2024 17:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=40020 Amounts earmarked for taxation were treated as provisions, not reserves, because they met an accrued and known liability and were excluded from capital computation. Retirement gratuity appropriations required factual scrutiny: a scientifically or actuarially estimated liability may be a provision, while only any excess beyond the reasonably necessary amount can be treated as reserve, so the matter was remanded for reconsideration. Amounts set apart for proposed dividends were also treated as provisions rather than reserves, and dividends paid out of general reserve were excluded from the reserve figure, as past reserves are not ordinarily reduced absent clear indication to the contrary. Case-Laws Income Tax Fri, 25 Sep 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=40020