https://www.taxtmi.com/caselaws?id=258740 A statutory transfer to a reserve fund under co-operative societies law was treated as an appropriation of profits, not a diversion of income at source by overriding title, because the fund remained available for the society's business and the State did not take title to the income before it reached the assessee. The amount was therefore taxable in the assessee's hands. The transfer was also not allowable as business expenditure under the Income-tax Act, since it was merely setting aside profits for future business use and not an outgoing incurred for business expenditure. Accordingly, no deduction was permissible on that account. en-us Mon, 17 Nov 2014 00:00:00 +0530 Mon, 20 Apr 2015 11:02:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=258740 A statutory transfer to a reserve fund under co-operative societies law was treated as an appropriation of profits, not a diversion of income at source by overriding title, because the fund remained available for the society's business and the State did not take title to the income before it reached the assessee. The amount was therefore taxable in the assessee's hands. The transfer was also not allowable as business expenditure under the Income-tax Act, since it was merely setting aside profits for future business use and not an outgoing incurred for business expenditure. Accordingly, no deduction was permissible on that account. Case-Laws Income Tax Mon, 17 Nov 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=258740