Case Law Details
Brief Facts of the Case and Question of Law
Brief Facts
For Assessment year 2006-07 the Tribunal while computing book profit under Section 115JB confirmed the addition of Rs. 9,80,00,000/- transferred to the special reserve pursuant to the provisions of Section 45-IC of the Reserve Bank of India Act, 1934 under Clause (b) of the Explanation to Section 115JB. And for the Assessment year 2007-08 Tribunal,while computing book profit under Section 115JB confirmed the additions of :- (a) Rs. 16,00,00,000/- transferred to the special reserve pursuant to the provisions of Section 45-IC of the Reserve Bank of India Act, 1934; and (b) Rs. 18,66,00,000/- transferred to the debt redemption reserve, both under Clause (b) of the Explanation to Section 115JB.
Question of Law
1. Whether reserve created as per the mandate of Section 45-IC of the Reserve Bank of India Act, 1934, is a liability or a reserve?
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