Held that the transfer of monies to funds is allowable as deduction under section 37(1) only if at least one of the conditions exists, there is an overriding statute by which the amounts transferred to funds do not remain with or under the control of assessee; or if the assessee has “actually spent” moneys for the relevant purposes during the previous year. In the present case, the provisions of section 37(1) of the Madhya Pradesh Co-operative Societies Act, 1960 spoke of “appropriate of profits” only. There was no material available on record by which it could be verified that either of the two conditions was satisfied. Matter remanded to the Assessing Officer. that the provision made by the assessee qua standard assets was basically in the nature of bad and doubtful debts and was allowable under section 36(1)(viia). (AY.2014-15)