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2022 (9) TMI 724 - HC - Income TaxAccrual of liability - Liability to pay bonus - principles for ascertaining as to when a liability does not metamorphosize into a contingent liability - HELD THAT:- Having regard to the facts, the Revenue's contention, that since the respondent/assessee had the option to defray the liability towards bonus against future amount due from GE International Ltd. to the respondent/assessee, it would morph the liability which accrues from yearto-year into one which is contingent, in our view, is a submission which is unsustainable in law - The other argument of the Revenue, that GE International Ltd. could waive the receipt of bonus amount, and hence would convert the subsisting liability into a contingent liability is also an argument which, according to us, is misconceived. A careful perusal of the principles enunciated by the Supreme Court in BHARAT EARTH MOVERS VERSUS COMMISSIONER OF INCOME-TAX [2000 (8) TMI 4 - SUPREME COURT] would show that both the arguments advanced by Mr Agarwal (Revenue) are answered. - The reliance by Mr Agarwal on Excel Industries Limited [2013 (10) TMI 324 - SUPREME COURT] is equally misconceived. Decided against the Revenue.
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