https://www.taxtmi.com/caselaws?id=258743 Amounts transferred to a statutory reserve fund under the Gujarat State Cooperative Societies Act are described as an appropriation of profits, not a diversion of income at source by overriding title, because the fund remains available for use in the business of the society. The text also states that such a transfer is not deductible as business expenditure under the Income-tax Act since it is not an actual outgoing incurred for business purposes but only a reserve appropriation. On that basis, the substantial questions of law were answered against the assessee and the tax appeals failed. en-us Wed, 25 Mar 2015 00:00:00 +0530 Mon, 20 Apr 2015 11:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=258743 Amounts transferred to a statutory reserve fund under the Gujarat State Cooperative Societies Act are described as an appropriation of profits, not a diversion of income at source by overriding title, because the fund remains available for use in the business of the society. The text also states that such a transfer is not deductible as business expenditure under the Income-tax Act since it is not an actual outgoing incurred for business purposes but only a reserve appropriation. On that basis, the substantial questions of law were answered against the assessee and the tax appeals failed. Case-Laws Income Tax Wed, 25 Mar 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=258743