https://www.taxtmi.com/caselaws?id=32724 Transfer of a portion of income to a reserve fund under the Gujarat Co-operative Societies Act, 1961 was treated as neither diversion of income at source by overriding title nor allowable as business expenditure under the Income-tax Act, 1961. The Court followed its reasoning in an earlier same-day decision between the same parties and applied that approach to the referred questions. The reserve fund transfer was therefore characterised as an application of income rather than a deductible outgoing or income diverted before accrual, and the questions were answered in favour of the Revenue. en-us Mon, 10 Mar 2008 00:00:00 +0530 Wed, 25 Mar 2009 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=32724 Transfer of a portion of income to a reserve fund under the Gujarat Co-operative Societies Act, 1961 was treated as neither diversion of income at source by overriding title nor allowable as business expenditure under the Income-tax Act, 1961. The Court followed its reasoning in an earlier same-day decision between the same parties and applied that approach to the referred questions. The reserve fund transfer was therefore characterised as an application of income rather than a deductible outgoing or income diverted before accrual, and the questions were answered in favour of the Revenue. Case-Laws Income Tax Mon, 10 Mar 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=32724