https://www.taxtmi.com/caselaws?id=49319 Amounts credited to a Consumers' Benefit Reserve Account representing excess clear profit refundable to consumers are deductible in computing business income because such appropriations are part of the statutory rate-regulation scheme and do not form part of the assessee's real (commercial) profits. Applying commercial accountancy principles under the mercantile system, an accrued statutory liability to return amounts to consumers may be deducted in the year of accrual. The clarification distinguishes statutory "clear profit" under the Electricity (Supply) Act scheme from assessable commercial profit and directs that refundable appropriations reduce taxable business income. en-us Mon, 19 Apr 1965 00:00:00 +0530 Sat, 25 Feb 2023 13:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49319 Amounts credited to a Consumers' Benefit Reserve Account representing excess clear profit refundable to consumers are deductible in computing business income because such appropriations are part of the statutory rate-regulation scheme and do not form part of the assessee's real (commercial) profits. Applying commercial accountancy principles under the mercantile system, an accrued statutory liability to return amounts to consumers may be deducted in the year of accrual. The clarification distinguishes statutory "clear profit" under the Electricity (Supply) Act scheme from assessable commercial profit and directs that refundable appropriations reduce taxable business income. Case-Laws Income Tax Mon, 19 Apr 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49319