https://www.taxtmi.com/caselaws?id=40190 For surtax capital computation, an appropriation for doubtful debts created out of the profit and loss account, without reference to any existing or ascertained liability, was treated as a reserve and was includible in capital base. By contrast, classification of a gratuity appropriation depends on whether it represents a provision for a known contingent liability or an excess over such provision, ordinarily requiring actuarial or other reliable material. As no actuarial valuation or comparable basis was available, the gratuity item could not be conclusively classified on the existing record and was remitted for fresh determination on proper material and principles. en-us Thu, 15 Feb 1996 00:00:00 +0530 Thu, 10 Jul 2014 12:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=40190 For surtax capital computation, an appropriation for doubtful debts created out of the profit and loss account, without reference to any existing or ascertained liability, was treated as a reserve and was includible in capital base. By contrast, classification of a gratuity appropriation depends on whether it represents a provision for a known contingent liability or an excess over such provision, ordinarily requiring actuarial or other reliable material. As no actuarial valuation or comparable basis was available, the gratuity item could not be conclusively classified on the existing record and was remitted for fresh determination on proper material and principles. Case-Laws Income Tax Thu, 15 Feb 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=40190