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1972 (12) TMI 23 - KERALA HIGH COURT
" Whether Tribunal was right in holding that the sum of Rs. 10,225 transferred to the contingencies reserve account, the sum of Rs. 30,475 transferred to the development reserve account and the sum of Rs. 23,417 transferred to the special reserve account are not to be deducted in arriving at the taxable income of the assessee-company ?" - this amount is really laid out for the purpose of the business because it is to meet certain contingencies which a public utility concern has normally to anticipate to happen in the business and provide for. But I do not rest my final conclusion on this point applying section 37. I agree with the reasoning of my learned brother that this amount of contingency reserve must be deducted in arriving at the total income for assessment