Held that the fact that the assessee was required to transfer a portion of its profits to a special reserve or that there were certain restrictions on using such profits would not be enough to hold that the same were not the income of the assessee. That special reserve belonged to the assessee and was reserved for utilisation in certain eventualities for the safety and benefit of the assessee and its customers. This fund was in the nature of savings that belonged to the assessee. The profits transferred were also not an amount diverted at source by overriding title. That the profits transferred by the assessee to the special reserves would also form a part of book profits under section 115JB of the Act. (AY. 2013-14)
Srei Infrastructure Finance Ltd. v. Asst. CIT (2023)105 ITR 371 / 154 taxmann.com 650/ 225 TTJ 211 (Kol) (Trib)
S. 115JB : Company-Book profit-Mandatorily transferred to reserve form part of book profits-Income-No diversion of income by overriding title-Contingent provision on standard assets could not be deducted as it was not ascertained liability. [S. 5]