https://www.taxtmi.com/caselaws?id=61132 An amount set apart out of profits is treated as a reserve, not a provision, where it is not intended to meet a known liability, contingency, commitment, or diminution in assets, and its true character is determined by substance rather than the label used in the accounts. Applied to bad and doubtful debts, amounts not written off, not allowed as deductions, and retained in the business may qualify as reserves. On that basis, such amounts were described as excludible from chargeable profits under the First Schedule and includible in capital under the Second Schedule for surtax computation. en-us Wed, 23 Jan 1980 00:00:00 +0530 Tue, 11 Jan 2011 10:37:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=61132 An amount set apart out of profits is treated as a reserve, not a provision, where it is not intended to meet a known liability, contingency, commitment, or diminution in assets, and its true character is determined by substance rather than the label used in the accounts. Applied to bad and doubtful debts, amounts not written off, not allowed as deductions, and retained in the business may qualify as reserves. On that basis, such amounts were described as excludible from chargeable profits under the First Schedule and includible in capital under the Second Schedule for surtax computation. Case-Laws Income Tax Wed, 23 Jan 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=61132