https://www.taxtmi.com/caselaws?id=28434 The High Court ruled that the amount appropriated to the contingencies reserve was not an allowable deduction in computing the assessee's business income. It was held that there was no diversion of income by an overriding title as the amount remained under the control of the assessee. Additionally, the appropriation did not qualify as an expenditure under section 37 of the Income Tax Act as it was for meeting unknown future liabilities, not known or accrued liabilities. Therefore, the Court concluded in favor of the Revenue, stating that the appropriation does not form part of the assessee's real income. en-us Thu, 30 Jun 1983 00:00:00 +0530 Mon, 22 Feb 2010 16:33:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28434 The High Court ruled that the amount appropriated to the contingencies reserve was not an allowable deduction in computing the assessee's business income. It was held that there was no diversion of income by an overriding title as the amount remained under the control of the assessee. Additionally, the appropriation did not qualify as an expenditure under section 37 of the Income Tax Act as it was for meeting unknown future liabilities, not known or accrued liabilities. Therefore, the Court concluded in favor of the Revenue, stating that the appropriation does not form part of the assessee's real income. Case-Laws Income Tax Thu, 30 Jun 1983 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28434