Held that the amount transferred to the statutory reserve fund was received and then reflected as part of the total income, and hence deduction was not permissible. The authorities below were justified in disallowing the deduction claimed by the assessees for the amount transferred to the reserve fund in compliance with the mandatory provisions of the Reserve Bank of India Act. (AY.2003-04 to 2014-15)
Shriram Transport Finance Co. Ltd. v. ITO (OSD) (2024)460 ITR 66 (Mad)(HC)
S. 4 : Charge of income-tax-Diversion of income by overriding title-Amounts transferred to statutory reserve fund-Amounts received and then transferred-No diversion of income by overriding title.[S. 145]