https://www.taxtmi.com/caselaws?id=61226 An appropriation is treated as a reserve for statutory deduction purposes when, on its true nature and surrounding circumstances, it is not made to meet an existing liability or diminution in assets but is retained as part of the company's reserves. On that principle, the amount set apart for bad and doubtful debts was regarded as a reserve because it had accumulated over time and the actual write-off was negligible. The dividend deduction was also accepted on the basis of applicable precedent, and the amount set aside for pension was treated as an allowable reserve for the same purpose. en-us Tue, 25 Jan 1983 00:00:00 +0530 Tue, 11 Jan 2011 13:48:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=61226 An appropriation is treated as a reserve for statutory deduction purposes when, on its true nature and surrounding circumstances, it is not made to meet an existing liability or diminution in assets but is retained as part of the company's reserves. On that principle, the amount set apart for bad and doubtful debts was regarded as a reserve because it had accumulated over time and the actual write-off was negligible. The dividend deduction was also accepted on the basis of applicable precedent, and the amount set aside for pension was treated as an allowable reserve for the same purpose. Case-Laws Income Tax Tue, 25 Jan 1983 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=61226