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2013 (10) TMI 80 - HC - Income TaxProvision for future liabilities (expenses) - whether allowable - mercantile basis of accounting - Held that:- future expenses if estimated satisfactorily can be allowed as expense - following decision in Bharat Earth Movers v. CIT [2000 (8) TMI 4 - SUPREME Court] - decided against the revenue. Disallowance u/s 14A - Held that:- Calculation mistakes while applying Rule 8D were pointed out by the respondent-assessee, but these have not been adverted to in view of the findings recorded by the tribunal on merit. Rule 8D is not retrospective as held by this Court in Maxopp Investment Limited v. CIT, [2011 (11) TMI 267 - Delhi High Court]. Further to invoke Rule 8D, the Assessing Officer has to first record a finding that he was not satisfied with the correctness of the claim for expenditure made by the assessee in relation to income, which did not form part of the total income under the Act. No such satisfaction has been recorded by the Assessing Officer. - Decided against the revenue.
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