https://www.taxtmi.com/caselaws?id=36451 Amounts appropriated from net profits under a statutory profit-distribution scheme are not deductible unless they are diverted before income accrues or constitute expenditure incurred to earn income. A co-operative society's contribution to the education fund was an appropriation out of profits under the statutory scheme, so it was not deductible. Loss on sale of Government securities held as surplus investment assets, rather than trading stock, was capital in nature; the sale did not convert the asset into stock-in-trade, so the loss was not allowable as a business deduction. en-us Mon, 16 Jul 1979 00:00:00 +0530 Mon, 22 Mar 2010 13:54:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36451 Amounts appropriated from net profits under a statutory profit-distribution scheme are not deductible unless they are diverted before income accrues or constitute expenditure incurred to earn income. A co-operative society's contribution to the education fund was an appropriation out of profits under the statutory scheme, so it was not deductible. Loss on sale of Government securities held as surplus investment assets, rather than trading stock, was capital in nature; the sale did not convert the asset into stock-in-trade, so the loss was not allowable as a business deduction. Case-Laws Income Tax Mon, 16 Jul 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36451