https://www.taxtmi.com/caselaws?id=283669 For the ceiling under section 36(1)(viii), "general reserves" must be given its ordinary commercial meaning and confined to freely distributable revenue reserves. Share premium is not a revenue reserve, a balance in the profit and loss account is not a reserve unless appropriated, and a special reserve created for a specific statutory purpose is not a general reserve. On that interpretation, share premium, profit and loss balance, and special reserve opening balance could not be included in general reserves for the proviso. The disallowance was therefore upheld and the claim for a higher deduction failed. en-us Fri, 24 Feb 2012 00:00:00 +0530 Sat, 05 Oct 2019 12:54:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=283669 For the ceiling under section 36(1)(viii), "general reserves" must be given its ordinary commercial meaning and confined to freely distributable revenue reserves. Share premium is not a revenue reserve, a balance in the profit and loss account is not a reserve unless appropriated, and a special reserve created for a specific statutory purpose is not a general reserve. On that interpretation, share premium, profit and loss balance, and special reserve opening balance could not be included in general reserves for the proviso. The disallowance was therefore upheld and the claim for a higher deduction failed. Case-Laws Income Tax Fri, 24 Feb 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=283669