1988 (12) TMI 4 - HC - Income Tax

Summary

The High Court of Bombay delivered a judgment on the allowability of general reserves and taxation reserves as expenditure under the Income-tax Act, 1961. The court ruled that neither the taxation reserve nor the general reserve can be considered as an allowance or expenditure. The judgment was in favor of the assessee for the assessment years 1969-70, 1970-71, and 1971-72.