Claim of deduction of Provisions made - Basis of creating the ...

Court Allows Deduction for Provisions on Cancelled Contracts Due to Vendor Commitments Under Supply Agreements.

February 7, 2022

Case Laws Income Tax AT

Claim of deduction of Provisions made - Basis of creating the provision - uncertain liability or not - The above facts would substantiate that the provision has been made for material cost and/or compensation for cancellation/suspension of contracts which is incurred under contracts with its vendors entered pursuant to pre-existing commitments against supply contracts with customers, the latter having been subsequently cancelled/suspended. Hence, we hold that the provision is an allowable deduction. - AT

View Source

← Previous Next →

Claim of deduction of Provisions made - Basis of creating the ...

Court Allows Deduction for Provisions on Cancelled Contracts Due to Vendor Commitments Under Supply Agreements.

February 7, 2022

Case Laws Income Tax AT

You may also like:

The case pertains to the disallowance of a provision for contract losses by the CIT(A) and AO, who erroneously concluded it as an unascertained liability not deductible...

Refund claim - credit of additional duty of customs (CVD) on inputs imported - It is clear that even as per the tripartite contracts, the appellants are a sort of...

The High Court addressed the issue of deduction u/s 80-IC (2) (a) for a company manufacturing Pan Masala. The company's product was considered excluded for deduction due...

Termination of contract - non-performance of the contract - the termination of the contract was illegal and without following due procedure as required under the...

Provision made for leave salary allowed as deduction - HC

The case involved the interpretation of Article 366 (29A) of the Constitution regarding the transfer of right of use goods. The High Court examined whether contracts for...

Seeking renewal of registration of Goods Service Tax (GST) - cancelled due to non-filing of returns - The appellant faced the risk of irreparable loss and exclusion from...

Refund of GST paid deposited by the Vendor on advance paid by the appellant since no supply was made - Return/refund of the entire advance amount - The High Court found...

Deduction u/s 80IA - ICD - Inland port - infrastructure facilities - deduction allowed - HC

The Income Tax Appellate Tribunal considered whether an assessee can claim deduction under Chapter VI-A of the Income Tax Act, 1961 for the first time in the return...

PCIT's view that section 36 allows deduction only for bad and doubtful debts, not for provision on standard assets, was challenged. AR presented case laws allowing...

The Tribunal held that based on the financial parameters and risk profile, the assessee qualifies as a developer rather than merely a contractor u/s 80IA of the Income...

Deduction u/s 80IA(4) - whether assessee is not a contractor, but developer of infrastructure facilities? - we have analyzed one contract/agreement with the government...

Deduction u/s 80IA was allowed despite delay in filing Form 10CCB due to technical glitches on the Income Tax portal. The form was filed 1 hour 22 minutes after the due...

The case involves rectification u/s 154 for disallowance of bad debts provisions u/s 36(1)(viia) in a co-operative bank's computation sheet. ITAT held that the mistake...

Quick Updates: