Karimjee P. Ltd. vs Deputy Commissioner Of Income-Tax And ...

The Supreme Court addressed whether an assessee could be denied a deduction under Section 80HHC of the Income-tax Act, 1961, due to non-compliance with the second proviso of the section. The Court permitted the assessee to rectify the compliance deficiency during the pendency of the proceedings. Upon confirmation that the necessary amount was debited from the profit and loss account and credited to a reserve account, the Court allowed the deduction.