https://www.taxtmi.com/caselaws?id=277421 A statutory reserve under the Andhra Pradesh Co-operative Societies Act was not deductible on a diversion-of-income theory because the relevant provision had been omitted and the remaining scheme did not create an overriding charge; the claim failed. Provision for sundry debtors and NPA-related amounts was allowable as a bank deduction within the bad and doubtful debts framework; the claim succeeded. Subsidy receivable from the Government was not a bad debt or deductible provision, so the addition was restored. Waiver of penal interest and overdue interest was treated as business expenditure or loss and was allowable. Overdue interest required fresh factual verification, so that issue was remitted. Interest on the agricultural credit stabilisation fund and contribution to the co-operative educational fund were also allowable, including as statutory diversion in the latter case. en-us Wed, 08 Nov 2017 00:00:00 +0530 Tue, 04 Dec 2018 08:55:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=277421 A statutory reserve under the Andhra Pradesh Co-operative Societies Act was not deductible on a diversion-of-income theory because the relevant provision had been omitted and the remaining scheme did not create an overriding charge; the claim failed. Provision for sundry debtors and NPA-related amounts was allowable as a bank deduction within the bad and doubtful debts framework; the claim succeeded. Subsidy receivable from the Government was not a bad debt or deductible provision, so the addition was restored. Waiver of penal interest and overdue interest was treated as business expenditure or loss and was allowable. Overdue interest required fresh factual verification, so that issue was remitted. Interest on the agricultural credit stabilisation fund and contribution to the co-operative educational fund were also allowable, including as statutory diversion in the latter case. Case-Laws Income Tax Wed, 08 Nov 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=277421