https://www.taxtmi.com/caselaws?id=38435 Section 34(3)(a) of the Income-tax Act is satisfied when the requisite amount is clearly credited in the accounts and earmarked as a reserve for the statutory business purpose during the prescribed period. The provision does not require a separate fund or a particular account head, so a transfer shown in the balance-sheet under shareholders' account can still qualify if the amount is identifiable as development rebate reserve. The absence of a separate entry in the directors' report does not by itself defeat compliance. The analysis distinguishes cases involving a distinct statutory duty to maintain a separate reserve fund. en-us Fri, 19 Mar 1976 00:00:00 +0530 Tue, 06 Apr 2010 11:57:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38435 Section 34(3)(a) of the Income-tax Act is satisfied when the requisite amount is clearly credited in the accounts and earmarked as a reserve for the statutory business purpose during the prescribed period. The provision does not require a separate fund or a particular account head, so a transfer shown in the balance-sheet under shareholders' account can still qualify if the amount is identifiable as development rebate reserve. The absence of a separate entry in the directors' report does not by itself defeat compliance. The analysis distinguishes cases involving a distinct statutory duty to maintain a separate reserve fund. Case-Laws Income Tax Fri, 19 Mar 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38435