Special reserve withdrawals remain taxable as business income, with limited set-off of unabsorbed cessation-year business loss. Any amount withdrawn from a special reserve, where deduction had earlier been allowed for creating and maintaining that reserve, is taxable in the year of withdrawal as profits and gains of business or profession. The tax treatment continues even if the business no longer exists. On discontinuance of business or profession, only unabsorbed business loss of the year of cessation may be set off, and only against income taxable on such withdrawal, excluding speculation loss.