Special reserve withdrawal taxation: withdrawn sums deemed business income in the year of withdrawal, even if business has ceased. Amounts withdrawn from a special reserve previously allowed as a deduction under the reserve clause are deemed to be profits and gains of business or profession and are chargeable to tax in the previous year of withdrawal; if withdrawal occurs after business cessation, the amount is treated as income of that previous year as if the business were in existence. The related subsection cross reference is amended to include this deeming provision.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Special reserve withdrawal taxation: withdrawn sums deemed business income in the year of withdrawal, even if business has ceased.
Amounts withdrawn from a special reserve previously allowed as a deduction under the reserve clause are deemed to be profits and gains of business or profession and are chargeable to tax in the previous year of withdrawal; if withdrawal occurs after business cessation, the amount is treated as income of that previous year as if the business were in existence. The related subsection cross reference is amended to include this deeming provision.
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