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2005 (1) TMI 59 - HC - Income TaxAmount of Rs. 7,85,725 kept as a provision for future scheme loss - Whether the Tribunal is correct in finding that the amount of Rs. 7,85,725 provided by the assessee as an accrued liability is contingent liability and hence not an allowable deduction?" - Tribunal has rightly come to the conclusion that no liability had accrued in the previous year relevant to the assessment year in question and as no liability has accrued, the same is a contingent liability. It is not a case where the liability has accrued and the payment is postponed. - Accordingly, we answer the question posed as above, in the affirmative, in favour of the Revenue and against the assessee.
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