https://www.taxtmi.com/caselaws?id=24797 A compulsory contribution by a co-operative society to the Co-operative Education Fund, imposed under the Karnataka Co-operative Societies law when dividend is declared, was treated as an overriding charge on receipts rather than an appropriation of profits. Because the liability arose by reference to profits before income finally accrued to the society, the amount was held to be diverted at source and not part of taxable income. The contribution was therefore deductible in computing income, and the issue was decided in favour of the assessee and against the Revenue. en-us Tue, 28 Jun 1988 00:00:00 +0530 Wed, 11 Feb 2026 17:46:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=24797 A compulsory contribution by a co-operative society to the Co-operative Education Fund, imposed under the Karnataka Co-operative Societies law when dividend is declared, was treated as an overriding charge on receipts rather than an appropriation of profits. Because the liability arose by reference to profits before income finally accrued to the society, the amount was held to be diverted at source and not part of taxable income. The contribution was therefore deductible in computing income, and the issue was decided in favour of the assessee and against the Revenue. Case-Laws Income Tax Tue, 28 Jun 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=24797