https://www.taxtmi.com/caselaws?id=312172 ITAT Mumbai held that Debt Redemption Reserve should be allowed as deduction while computing book profit under Section 115JB. Following Bombay HC precedent in Raymond Ltd., the tribunal ruled that amounts set apart for known liabilities do not constitute reserves in true sense. The mere labeling as "reserve" does not make it a reserve under Explanation (b) to Section 115JA. ITAT reversed lower authorities' orders and allowed the assessee's claim for deduction. en-us Wed, 31 May 2017 00:00:00 +0530 Tue, 06 Feb 2024 08:19:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=312172 ITAT Mumbai held that Debt Redemption Reserve should be allowed as deduction while computing book profit under Section 115JB. Following Bombay HC precedent in Raymond Ltd., the tribunal ruled that amounts set apart for known liabilities do not constitute reserves in true sense. The mere labeling as "reserve" does not make it a reserve under Explanation (b) to Section 115JA. ITAT reversed lower authorities' orders and allowed the assessee's claim for deduction. Case-Laws Income Tax Wed, 31 May 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=312172