Amount transferred to statutory reserve as per RBI Act not deductible from assessable income

Shriram City Union Finance Limited Vs ACIT (Madras High Court) Madras High Court held that the amount transferred to the statutory reserve as mandated under the provisions of the RBI Act, is not an allowable deduction in computing the assessable income under the regular computation and computation of book profits under section 115JB of the Income Tax Act. Facts- Present appeal has been filed by the appellant mainly contesting that whether the Tribunal was right in holding that there has been no diversion of income by overriding charge in respect of amount transferred to Statutory Reserve Fund ...