https://www.taxtmi.com/caselaws?id=272552 Section 46 of the Andhra Pradesh Co-operative Societies Act, 1964 was treated as an investment-and-application provision, not a diversion of income by overriding title, so the statutory reserve was not deductible on that basis. Recovery-related sundry debtor items were accepted as deductible business outgoings linked to bad and doubtful debts, but interest subsidy receivable from the Government was not a bad debt because the liability had not crystallised as irrecoverable. Waiver of penal interest and interest on overdue deposits was allowed as a business loss, while the NPA provision and contribution to the co-operative educational fund were also allowed as deductions. The overdue interest issue required fresh verification. en-us Wed, 08 Nov 2017 00:00:00 +0530 Mon, 07 May 2018 19:50:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=272552 Section 46 of the Andhra Pradesh Co-operative Societies Act, 1964 was treated as an investment-and-application provision, not a diversion of income by overriding title, so the statutory reserve was not deductible on that basis. Recovery-related sundry debtor items were accepted as deductible business outgoings linked to bad and doubtful debts, but interest subsidy receivable from the Government was not a bad debt because the liability had not crystallised as irrecoverable. Waiver of penal interest and interest on overdue deposits was allowed as a business loss, while the NPA provision and contribution to the co-operative educational fund were also allowed as deductions. The overdue interest issue required fresh verification. Case-Laws Income Tax Wed, 08 Nov 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=272552