https://www.taxtmi.com/caselaws?id=59010 Amounts set apart by a co-operative society to a Capital Redumption Fund, created under the terms of financial assistance and used to repay Government share capital in instalments, were not deductible. The obligation arose from contract rather than statute, and the amount was an appropriation from the society's own profits toward its repayment liability. It did not amount to diversion by overriding title because no third-party entitlement attached to the sums, and it was not an allowable loss or expenditure under the income-tax provisions considered. The amount therefore remained part of the assessee's taxable income. en-us Wed, 19 Dec 1979 00:00:00 +0530 Thu, 23 Dec 2010 15:42:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=59010 Amounts set apart by a co-operative society to a Capital Redumption Fund, created under the terms of financial assistance and used to repay Government share capital in instalments, were not deductible. The obligation arose from contract rather than statute, and the amount was an appropriation from the society's own profits toward its repayment liability. It did not amount to diversion by overriding title because no third-party entitlement attached to the sums, and it was not an allowable loss or expenditure under the income-tax provisions considered. The amount therefore remained part of the assessee's taxable income. Case-Laws Income Tax Wed, 19 Dec 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=59010