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2016 (5) TMI 397 - HC - Income TaxAdditions made on account of provision for arrears of salary being as prior period expenses and contingent liabilities - Held that:- Tribunal after examining the matter that as per notification dated 7.1.2009 issued by the State Government, the arrears of pay revision were to be paid by the assessee in two instalments i.e. 40% during the financial year 2008-09 and 60% in the next financial year. The liability was thus not in the nature of any contingent liability. Since the method adopted by the assessee was mercantile system of accounting and the provision on account of arrears for salary payment was made in the accounts on accrual basis, the disallowance made by the Assessing Officer was not held to be justified. The findings recorded by the Tribunal are pure findings of fact which have not been shown to be illegal or perverse by the learned counsel for the appellant-revenue. - Decided against revenue
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