https://www.taxtmi.com/caselaws?id=62759 Maintenance obligations for aircraft engines under the Aircraft Act, 1934 and Aircraft Rules, 1937 can give rise to an accrued liability where periodic overhaul and hot section inspection are mandatory, reasonably estimable, and crystallised during the year, so the provision is not contingent merely because payment is deferred. Expenditure incurred to preserve and maintain an existing engine, without creating a new asset or enduring advantage, is revenue in nature even if the repairs extend useful life. On that basis, the provision for overhaul and inspection was deductible and the disallowance was unsustainable. en-us Fri, 04 Jan 2008 00:00:00 +0530 Sat, 15 Jun 2013 14:22:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=62759 Maintenance obligations for aircraft engines under the Aircraft Act, 1934 and Aircraft Rules, 1937 can give rise to an accrued liability where periodic overhaul and hot section inspection are mandatory, reasonably estimable, and crystallised during the year, so the provision is not contingent merely because payment is deferred. Expenditure incurred to preserve and maintain an existing engine, without creating a new asset or enduring advantage, is revenue in nature even if the repairs extend useful life. On that basis, the provision for overhaul and inspection was deductible and the disallowance was unsustainable. Case-Laws Income Tax Fri, 04 Jan 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=62759