https://www.taxtmi.com/caselaws?id=37454 Contributions to contingency reserve and development reserve were not treated as deductible, following the Madras HC's earlier view on those reserve appropriations, despite contrary views elsewhere. Interest earned on securities purchased out of the contingency reserve was also held not eligible for relief under section 80-I because the income arose from the securities and lacked a direct nexus with the electricity business. The statutory requirement to invest the reserve in approved securities did not make that interest attributable to the priority industry, and the reserve or securities were not treated as trading assets. The reference was answered wholly against the assessee and in favour of the Revenue. en-us Mon, 06 Feb 1978 00:00:00 +0530 Tue, 11 Jul 2017 11:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37454 Contributions to contingency reserve and development reserve were not treated as deductible, following the Madras HC's earlier view on those reserve appropriations, despite contrary views elsewhere. Interest earned on securities purchased out of the contingency reserve was also held not eligible for relief under section 80-I because the income arose from the securities and lacked a direct nexus with the electricity business. The statutory requirement to invest the reserve in approved securities did not make that interest attributable to the priority industry, and the reserve or securities were not treated as trading assets. The reference was answered wholly against the assessee and in favour of the Revenue. Case-Laws Income Tax Mon, 06 Feb 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37454