https://www.taxtmi.com/caselaws?id=40059 The Super Profits Tax Act, 1963 required a company's capital to include reserves, but not mere provisions against anticipated liabilities. The character of an amount must be determined from its substance and accounting treatment, not only from the label used in the balance-sheet. On the stated facts, the sum set apart as additional cane price was not a real provision: no actual liability existed, no payment was made, the entry was later reversed, and it was not a commercial charge against profits. It was therefore treated as a reserve and included in the company's capital for super profits tax purposes. en-us Wed, 16 Jul 1986 00:00:00 +0530 Tue, 29 Jul 2014 17:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=40059 The Super Profits Tax Act, 1963 required a company's capital to include reserves, but not mere provisions against anticipated liabilities. The character of an amount must be determined from its substance and accounting treatment, not only from the label used in the balance-sheet. On the stated facts, the sum set apart as additional cane price was not a real provision: no actual liability existed, no payment was made, the entry was later reversed, and it was not a commercial charge against profits. It was therefore treated as a reserve and included in the company's capital for super profits tax purposes. Case-Laws Income Tax Wed, 16 Jul 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=40059