https://www.taxtmi.com/caselaws?id=40061 For computation of capital under the Second Schedule to the Super Profits Tax Act, the decisive test is the true character of the amount in the accounts. Amounts not earmarked for an existing or accrued liability, not charged against profits as a provision, and not created to meet a present liability qualify as reserves and are includible in capital. On that principle, several specified funds, including capital reserve, rehabilitation reserve, bad and doubtful debts reserve, gratuity reserve, reserve for contingencies, fleet replacement reserve and dividend equalisation reserve, were treated as reserves. Forfeited moneys reserve was not so treated, and one item was deleted as not pressed. en-us Thu, 31 Jul 1986 00:00:00 +0530 Tue, 29 Jul 2014 17:22:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=40061 For computation of capital under the Second Schedule to the Super Profits Tax Act, the decisive test is the true character of the amount in the accounts. Amounts not earmarked for an existing or accrued liability, not charged against profits as a provision, and not created to meet a present liability qualify as reserves and are includible in capital. On that principle, several specified funds, including capital reserve, rehabilitation reserve, bad and doubtful debts reserve, gratuity reserve, reserve for contingencies, fleet replacement reserve and dividend equalisation reserve, were treated as reserves. Forfeited moneys reserve was not so treated, and one item was deleted as not pressed. Case-Laws Income Tax Thu, 31 Jul 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=40061