...-tax (Appeals) has allowed the claim of the assessee holding that once the amount is transferred to a contingency reserve fund which is a statutory liability and the assessee has no control over that...Keshkal Co-operative Marketing Society Ltd. v. CIT [1987] 165 ITR 437 wherein the view has been taken that once the contingency reserve fund is...the Income-tax Act, 1961." 4. Considering the admitted facts that the contingency reserve fund has been created under the statute, is a statutory liability...

...that process. It is not disputed that the licensee-company has a contingency reserve fund. The correspondence shows that at one stage the State Government was requested to release the sum payable to...direct that the amounts due in terms of the award along with interest as fixed by this Court in entirety shall be paid out of the contingency reserve fund within one month from today. The official...there be any accounting to be made on the footing that the contingency reserve fund is not available or adequate amounts are not available therein, the payment shall be made out of the compensation and...

...schedule in the Rule Book, Para 7 Part A in Note-III an amount equal to 1.5.% of the total cost is to be paid by each beneficiary towards reserve fund, along with the sixth & final instalment. The opposite party sent a letter st...reserve fund and 2% towards CGEWHO overheads and fixed the initial cost at Rs.1051/- per sq.ft at the time of announcing the scheme and calling for applications for allotment. This was hiked to Rs...Fund is created to cater to any unforeseen requirements and it is common for all projects and the amounts were paid...

...that in computing the capital, the contingency reserve fund should be included as a “reserve” for the purpose of ascertaining the statutory deduction under the...accounts styled as ‘reserve for doubtful debts’ and ‘contingency reserve’ were includible in computing the capital?(5) Whether, on the facts and in the circumstances of the case, the surplus...payable in Pakistan and looking to all the circumstances set out above, the fund was in the nature of a “reserve” and not a “provision”. We agree with the finding of the Tribunal.5. In...

...right in holding that the Debenture Sinking Fund of Rs. 2,32,8,123, Replacement and Contingencies Fund of Rs. 6,97,90,155 and Contingency Reserve Fund of Rs. 69,92,624 constituted reserves for the...and Contingency Reserve Fund of Rs. 69,92,624 to be part of its capital. The ITO rejected the assessee's claim on the ground that the funds were not allowable for the capital computation to arrive at...appropriation out of the profits, which, according to the Revenue, could not be treated as reserves and moreover, the disputed fund was a breach of the Contingency Reserve Fund. Coming to the Contingency...

...under section 143(1)(a) of the Act was also challenged. The petitioner had claimed allowable deduction in respect of the contingency reserve fund in the respective returns. Up to the assessment year 1994...-95, the returns were accepted, allowing deduction in respect of the appropriation to’ contingency reserve fund and intimation under section 143(1)(a) was issued. Subsequently, notice under section 143...appropriation to contingency fund was accepted as allowable deduction in earlier years. With due respect, we are unable to agree with the principle sought to be enunciated by Dr. Pal relying on this decision. That apart the acceptan...

...Rs. 42 crores against interest on investment on capital asset replacement reserve fund and on investment on development repayment of loan and contingency reserve fund created as per the directions of...liable to be set aside.12. Thereafter, referring to the issue relating to sum of Rs. 42 crores on account of interest on investment on capital asset replacement reserve fund and on investment on development, repayme...fixed assets as claimed by the assessee.25. Considering the issue of treatment of Rs. 42 crores being interest on investment on capital asset replacement reserve fund and on investment on development repayment of lo...

...Replacement Reserve Fund and on investment on Development 1epayment of Loan and Contingency Reserve Fund, as income of the assessee, it is found that these funds were created under the specific directions .../CTK/2011, observed at page 8 of the CIT(A) order, which reads as under:- Considering the issue of treatment of Rs.42 crore being interest on investment on Capital Asset Replacement Reserve Fund and on investment on Development Repa...replacement, rehabilitation, modernization of capital asset fund of Rs.35,82,00,000/-. Further, the AO disallowed on account of development repayment of ITA No.256/CTK/2015 loans and contingencies fund and...

...regarding deductibility of the amount transferred to the contingency reserve fund account in arriving at the taxable business income of the assessee-company directly to the Supreme Court under...said Act and the Sixth Schedule thereto, the assessee appropriated certain sums out of its revenue to the contingency reserve account and claimed deduction of the same in the computation of its total...deduction either under section 37 or section 28 of the amount set apart for the capital contribution redemption fund?”2. This reference pertains to the...

...the society. At the end of the day, it may be application of remainder as per the requirement of law, but it does not, at the time of creation of a reserve fund becomes a certain obligation which it is obliged to discharge but rest ...only be with the approval of the State Government, it did not make any difference so far as the nature of the contingency reserve fund is concerned.Apparently, the M.P High Court has not...55 which gives effect to Section 63 clearly declares that reserve fund maintained by co-operative society will belong to the society. It also envisaged the purpose for which the fund can be used...

...the balance sheet. Schedule C gives the statutory contingencies reserve fund investments, the book value thereof being Rs 2,30,880.37 quoted on the stock exchange, besides Rs 50,031.35 which was not so quoted, the total coming to Rs...fund investments are not to be taken into account in “the statement of surpluses and deficiency of profits” it...other two items, return at 6 per cent on other reserves employed in the business i.e Rs 55,38,296 and rehabilitation reserve of Rs 30,15.202 as in his view even without taking these two last figures the...

...loss or unanticipated expenditure which may accrue in future, such an apportionment partakes the character of reserve fund. The Court explained : "The amount set aside out of pr...of law, but it does not, at the time of creation of a reserve fund becomes a certain obligation which it is obliged to discharge but rest in domains of uncertain contingency. It remains a contingent...difference so far as the nature of the contingency reserve fund is concerned. Apparently, the M.P. High Court has not noticed this distinction and has not adverted to the provisions of...

...audited accounts for the FY 2008-09 the State Commission found that the Appellant had invested Rs.95.75 crores in contingency reserve fund. Out of this, Rs.27.055 crores was invested in the securities of...and Special Appropriation; vii) Pass through Expenses; viii) Contingency Reserve; and ix) Misc. Receipts. 4. Ld. Counsel for the Appellant has made the following submissions on the...justified in disallowing the Pass through Expenses amounting to Rs. 74.46 crores. Page 7 of 26 Appeal No.110 of 2010 4.8 Contingency Reserves: According to the law, Contingency reserve has...

...the action of the AO in adding back a sum of Rs.42 Crores against interest on investment on capital asset replacement reserve fund and on investment on Development repayment of loan and contingency reserve...on investment on capital asset replacement reserve fund and on investment on development, repayment of loan and contingency ITA No. 099/CTK/2011 and ITA No. 114/CTK/2011 (Cross Appeals) reserve fund...fixed assets as claimed by the assessee. 25. Considering the issue of treatment of Rs.42 Crores being interest on investment on Capital Asset Replacement Reserve Fund and on investment on Development Repayment ...

... 6 permission to the assessee to utilize the contingency reserve fund of the company to meet the cyclone expenditure...permitted to utilize the Contingency Reserve Fund of the company to meet the cyclone expenditure as per the comments of the C & AG. 8. The Ld. CIT...2014 shall be utilised from the contingency reserve and cannot be debited to the Profit & Loss Account. He further submitted that the APERC also during November, 2014 gave permission to utilise...

...receiver. In the assessees case, the capital asset replacement reserve fund and the repayment of loan and contingency reserve fund were created under the specific directions of the Govt, of India contained...interest on investment Replacement, Rehabilitation, Modernisation of Capital Assets Fund for the assessment year 2013-14. 3. On the facts and in the circumstances of the case, the...fund for the assessment year 2013-14. 4. On the facts and in the circumstances of the case, the CIT(A) is not correct in law in allowing depreciation @ 15% on "railways and rolling...

..., which reads as under:- Considering the issue of treatment of Rs.42 crore being interest on investment on Capital Asset Replacement Reserve Fund and on investment on Development Repayment of Loan and Contingency ...assessment u/s.143(3) of the Act making additions on account of prior period expenses, provision for accrued expenses, provisions towards pension fund, interest accrued on investment on capital asset.... 3. (Provision towards pension fund): Whether in the facts and circumstance of the case Id.CIT(A) is justified in deleting the addition made by the AO in the impugned assessment order for...

..., which reads as under:- Considering the issue of treatment of Rs.42 crore being interest on investment on Capital Asset Replacement Reserve Fund and on investment on Development Repayment of Loan and Contingency ...assessment u/s.143(3) of the Act making additions on account of prior period expenses, provision for accrued expenses, provisions towards pension fund, interest accrued on investment on capital asset.... 3. (Provision towards pension fund): Whether in the facts and circumstance of the case Id.CIT(A) is justified in deleting the addition made by the AO in the impugned assessment order for...

...creation of a reserve fund becomes a certain obligation which it is obliged to discharge but rest in domains of uncertain contingency. It remains a contingent obligation of the assets of the society in...be with the approval of the State Government, it did not make any difference so far as the nature of the contingency reserve fund is concerned. Apparently, the M.P. High Court has not noticed this...income or not but so far as the fund which is compulsorily deducted are kept for contingency liability and the expenses which are already deducted or kept as reserve fund cannot be added and income...

...the contingency reserve for the benefit of the society itself and the consumer benefit reserve fund, which was intended to be returned to the consumers, the latter never becomes part of the company's...Company has to incur. Thus, in the case of Consumer Benefit Reserve. the benefit goes to the third party whereas the Contingency Reserve is for benefit of the Electric Company itself. In our case, the contribution goes to t...appropriation of remainder as per the requirement of law, but it does not, at the time of creation of a reserve fund becomes a certain obligation which it is obliged to discharge but rest in domains of uncertain contingency...