2008 (3) TMI 297 - HC - Income Tax

Whether Tribunal was right in law in holding that the amount transferred by Co-operative society to reserve fund u/s 67 of Gujarat Co-operative Societies Act, 1961 was not a diversion of income at source by overriding title Held, yes - Tribunal was right in law in holding that the transfer to reserve fund cannot be treated as a business expenditure and allowed deduction under section 28/37 of the Income-tax Act, 1961

Summary

The Gujarat High Court ruled in favor of the Revenue and against the assessee regarding the transfer to reserve fund account not being a diversion of income at source by overriding title. The judgment was based on a previous case between the same parties. The reference was disposed of with no order as to costs.