https://www.taxtmi.com/caselaws?id=5491 Amounts credited to a contingencies reserve under the Electricity (Supply) Act remained part of the assessee's income because the money first reached the assessee and was only thereafter earmarked for restricted business contingencies; there was no diversion by overriding title. The statutory control over use and investment did not prevent inclusion in business profits. The same appropriation was also not deductible, because it was not expenditure incurred for an existing liability but only a reserve set aside for possible future exigencies such as accidents, strikes, or plant replacement. The Supreme Court therefore held the sums taxable as business income without a corresponding deduction. en-us Tue, 28 Nov 1995 00:00:00 +0530 Thu, 28 May 2026 10:27:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5491 Amounts credited to a contingencies reserve under the Electricity (Supply) Act remained part of the assessee's income because the money first reached the assessee and was only thereafter earmarked for restricted business contingencies; there was no diversion by overriding title. The statutory control over use and investment did not prevent inclusion in business profits. The same appropriation was also not deductible, because it was not expenditure incurred for an existing liability but only a reserve set aside for possible future exigencies such as accidents, strikes, or plant replacement. The Supreme Court therefore held the sums taxable as business income without a corresponding deduction. Case-Laws Income Tax Tue, 28 Nov 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5491