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2016 (1) TMI 1407 - AT - Income TaxDeduction u/s. 43B - expenses incurred by the assessee on account of taxes and fees not pertaining to the year under consideration - method of accounting followed by the company - HELD THAT:- Tribunal in assessee’s own case for the assessment year 2003-04 placing reliance on the decision rendered by the Special Bench in the case of DCIT Vs. Glaxo Smithkline Consumer Healthcare Ltd. [2007 (7) TMI 334 - ITAT CHANDIGARH] and hold that the deduction for tax, duty etc., is allowable under section 43B of the Income-tax Act, 1961 on payment basis before incurring the liability to pay such amounts. Accordingly, the first question is answered in affirmative and in favour of the assessee. Expenditure and free services to the customers - HELD THAT:- This issue has also been considered in the assessee’s own case for the assessment year 2003-04 placing reliance on the decision of BHARAT EARTH MOVERS VERSUS COMMISSIONER OF INCOME-TAX [2000 (8) TMI 4 - SUPREME COURT] rejected the contentions of the Revenue and upheld the findings of Commissioner of Income Tax (Appeals) in favour of the assessee. What should be certain is the incurring of the liability. It should also be capable of being estimated with reasonable certainty though the actual quantification may not be possible. If these requirements are satisfied the liability is not a contingent one. The liability is in praesenti though it will be discharged at a future date. It does not make any difference if the future date on which the liability shall have to be discharged is not certain - Decided against revenue
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