https://www.taxtmi.com/caselaws?id=12804 Whether unclaimed credit balances written off and transferred to the assessee's general reserve constituted taxable income was determined by applying the principle that amounts appropriated to general reserve are treated as profits when the assessee no longer acknowledges any subsisting liability. Since the credits/deposits arising from trading transactions remained unclaimed for a long period and were unilaterally transferred to general reserve, the HC held they assumed the character of the assessee's trading receipts, attracting the ratio in SC precedent on unclaimed balances. Consequently, the sum was held to be income chargeable to income-tax, and the reference was answered against the assessee. en-us Tue, 12 Feb 2002 00:00:00 +0530 Tue, 23 Dec 2025 16:41:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=12804 Whether unclaimed credit balances written off and transferred to the assessee's general reserve constituted taxable income was determined by applying the principle that amounts appropriated to general reserve are treated as profits when the assessee no longer acknowledges any subsisting liability. Since the credits/deposits arising from trading transactions remained unclaimed for a long period and were unilaterally transferred to general reserve, the HC held they assumed the character of the assessee's trading receipts, attracting the ratio in SC precedent on unclaimed balances. Consequently, the sum was held to be income chargeable to income-tax, and the reference was answered against the assessee. Case-Laws Income Tax Tue, 12 Feb 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=12804