https://www.taxtmi.com/caselaws?id=60474 An amount labelled as a contingency reserve was treated as a provision where it was set aside to meet a known and existing liability for coal supplies. The substance of the amount, not its description, controlled the tax treatment. A provision for a definite liability does not become a reserve merely because it is written back to profit and loss account and later transferred to general reserve. Accordingly, the amount was excluded from capital computation for the earlier year, and the later transfer did not change its character into a reserve for surtax purposes, so the Revenue succeeded on that issue. en-us Wed, 25 Apr 1990 00:00:00 +0530 Wed, 05 Jan 2011 15:03:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=60474 An amount labelled as a contingency reserve was treated as a provision where it was set aside to meet a known and existing liability for coal supplies. The substance of the amount, not its description, controlled the tax treatment. A provision for a definite liability does not become a reserve merely because it is written back to profit and loss account and later transferred to general reserve. Accordingly, the amount was excluded from capital computation for the earlier year, and the later transfer did not change its character into a reserve for surtax purposes, so the Revenue succeeded on that issue. Case-Laws Income Tax Wed, 25 Apr 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=60474