1978 (8) TMI 2 - HC - Income Tax

Summary

The High Court of Patna ruled in favor of the assessee, Bihar State Financial Corporation, regarding the interpretation of deduction under section 36(1)(viii) of the Income Tax Act. The court held that the deduction should be calculated on the total income as assessed, not on income after allowing reserve. This decision was based on a previous case (Tax Case No. 96 of 1971) where a similar issue was addressed.