https://www.taxtmi.com/caselaws?id=169964 Amounts transferred to the profit and loss account under binding RBI directions, and simultaneously kept in general reserve to meet future claims, retained the character of a contingent liability and did not become taxable income in the bank's hands. The bank had no free commercial use of the sums, and its continuing obligation to honour future claims prevented treatment of the amounts as distributable surplus. The revisional view applying the rule for unclaimed trading deposits was therefore not sustainable on these facts, and the revision under section 263 was quashed to the extent it directed addition of the stale demand drafts amount. en-us Fri, 08 Jun 2012 00:00:00 +0530 Thu, 14 Apr 2016 11:42:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=169964 Amounts transferred to the profit and loss account under binding RBI directions, and simultaneously kept in general reserve to meet future claims, retained the character of a contingent liability and did not become taxable income in the bank's hands. The bank had no free commercial use of the sums, and its continuing obligation to honour future claims prevented treatment of the amounts as distributable surplus. The revisional view applying the rule for unclaimed trading deposits was therefore not sustainable on these facts, and the revision under section 263 was quashed to the extent it directed addition of the stale demand drafts amount. Case-Laws Income Tax Fri, 08 Jun 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=169964