1984 (7) TMI 46 - HC - Income Tax

Summary

The High Court of Patna ruled that the contingency reserves created by an electricity distribution company were not includible in the taxable income for the assessment years 1965-66, 1966-67, and 1967-68. The Income-tax Appellate Tribunal's decision in favor of the assessee was upheld based on previous case law. The court answered the question in the affirmative, stating that the contingency reserves do not form part of the assessable income.