https://www.taxtmi.com/caselaws?id=276016 Amounts credited to the consumers benefit reserve account under the Sixth Schedule to the Electricity (Supply) Act, 1948 are treated as part of a licensee's earned clear profits, not as an exclusion from income at the stage of computation. The scheme does not create a legally enforceable right in consumers before accrual, so the sums are not diverted at source and remain income of the assessee when earned. They are also not deductible as business expenditure under section 10(2)(xv) of the Income-tax Act, 1961, because the setting apart of profits is a statutory appropriation after profits arise, not an outgoing incurred to earn them. en-us Tue, 24 Jul 1962 00:00:00 +0530 Thu, 25 Oct 2018 15:15:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276016 Amounts credited to the consumers benefit reserve account under the Sixth Schedule to the Electricity (Supply) Act, 1948 are treated as part of a licensee's earned clear profits, not as an exclusion from income at the stage of computation. The scheme does not create a legally enforceable right in consumers before accrual, so the sums are not diverted at source and remain income of the assessee when earned. They are also not deductible as business expenditure under section 10(2)(xv) of the Income-tax Act, 1961, because the setting apart of profits is a statutory appropriation after profits arise, not an outgoing incurred to earn them. Case-Laws Income Tax Tue, 24 Jul 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276016