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2012 (3) TMI 81 - DELHI HIGH COURTProvision for Contingent liability – not made by way of debit to P&l A/c - passed in the books of account of transferee company at the time of take over of assets and liability as per the scheme of the arrangement – Revenue invoking Section 41(1) – Held that:- In present case, provision was made by increasing investment and creating provision for contingency by corrosponding amount, i.e. routed through balance sheet only and not by way of debit to P&L A/c. Thereby, assessee had not obtained any benefit in earlier A.Y. Hence, order of Tribunal holding inapplicability of Section 41(1) is upheld – Decided against the Revenue. Dis-allowance u/s 14A – Held that:- Since ITAT has remitted the matter to the A.O. therefore it is directed to A.O. to compute in light of judgement in case of Maxopp Investment Ltd. vs. CIT (2011 - TMI - 208569 - Delhi High Court).
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