Assessee is NBFC was mandated to create a reserve fund and transfer certain amount to such reserve as per section 45-IC of Reserve Bank of India Act, 1934. Assessee claimed deduction of said amount while computing taxable income.  Assessing Officer disallowed deduction claimed by assessee.  Order of the AO is affirmed by the Tribunal. On appeal the Court held that  in case of Shriram Transport Finance Company Ltd. v. ITO (OSD) [T.C.A. No. 755 of 2009, dated 30-6-2022], it was held that reserve is amount of profit which is retained for use in business, when difficulty arises and amount transferred by assessee to statutory reserve as mandated under provisions of the RBI Act, was not an allowable deduction in computing assessable income under provisions of Act under regular computation and computation of book profits under section 115JB. Order of the Tribunal is affirmed. (AY. 2006-07)