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2018 (11) TMI 1562 - HC - Income TaxAdditions made on account of provisions of performance related pay to director and staff - liability had not crystallized as assessee failed to furnish any evidence for accrual of expenses - tribunal deleted the addition - Held that:- The principle that when a liability has accrued but the computation thereof with precession, is not possible presently, the provision could be made on the basis of actuary by applying some scientific method or procedure, is well established principle. Reference in this respect may be to the decision of the Supreme Court in case of M/s. Rotork Controla India Pvt. Ltd.,v/s. Commissioner of Income Tax [2009 (5) TMI 16 - SUPREME COURT OF INDIA] In the present case, in fact, the facts are even better. Not only that the liability had crystallized, the computation thereof was also readily available. Payment could not be made simply, because, the approval of Board of Directors which was necessary, was awaited. The liability had thus, crystallized. On the principle of accrued liability, the Assessee was well within its right to claim the expenditure. - decided against revenue
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