https://www.taxtmi.com/caselaws?id=37731 A statutory contingencies reserve required under the electricity law was held deductible in computing taxable income because it was not a voluntary appropriation of distributable profits. The reserve had to be created within a fixed statutory limit, invested only in approved securities, used only for specified contingencies with Government approval, and transferred to the purchaser on sale of the undertaking. Those restrictions showed the was not at the free disposal of the assessee and did not form part of taxable profits. The reference was therefore answered in favour of the assessee. en-us Thu, 20 Jul 1978 00:00:00 +0530 Wed, 31 Mar 2010 17:00:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37731 A statutory contingencies reserve required under the electricity law was held deductible in computing taxable income because it was not a voluntary appropriation of distributable profits. The reserve had to be created within a fixed statutory limit, invested only in approved securities, used only for specified contingencies with Government approval, and transferred to the purchaser on sale of the undertaking. Those restrictions showed the was not at the free disposal of the assessee and did not form part of taxable profits. The reference was therefore answered in favour of the assessee. Case-Laws Income Tax Thu, 20 Jul 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37731