https://www.taxtmi.com/caselaws?id=40228 An amount specifically earmarked to meet a liability for proposed dividend, and shown in the balance-sheet as a provision, is not a reserve for computing capital under the Super Profits Tax Act, 1963. A sum set apart for a definite and existing liability cannot be treated as a reserve merely because shareholders have not yet approved the dividend proposal. The distinction from earlier authority lies in the absence there of any separate provision, where the amount remained part of general reserve. The amount therefore counts as a provision and is excluded from the capital base as a reserve. en-us Wed, 14 Feb 1996 00:00:00 +0530 Mon, 26 Apr 2010 12:30:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=40228 An amount specifically earmarked to meet a liability for proposed dividend, and shown in the balance-sheet as a provision, is not a reserve for computing capital under the Super Profits Tax Act, 1963. A sum set apart for a definite and existing liability cannot be treated as a reserve merely because shareholders have not yet approved the dividend proposal. The distinction from earlier authority lies in the absence there of any separate provision, where the amount remained part of general reserve. The amount therefore counts as a provision and is excluded from the capital base as a reserve. Case-Laws Income Tax Wed, 14 Feb 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=40228