https://www.taxtmi.com/caselaws?id=67560 Contract damages and extra expenditure became deductible as a business loss only when the liability was quantified and recovered by the contracting authority. Until quantification, the amount remained an anticipated liability and could not be claimed on a notional basis. The assessee's continuing dispute in arbitration did not defer deductibility once the liability had been ascertained and enforced. Any later remission or cessation would be dealt with separately under the applicable statutory scheme. The disallowance was therefore not sustainable, and the deduction was allowable in the year of quantification and recovery. en-us Tue, 30 Jul 1985 00:00:00 +0530 Fri, 11 Mar 2011 12:52:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=67560 Contract damages and extra expenditure became deductible as a business loss only when the liability was quantified and recovered by the contracting authority. Until quantification, the amount remained an anticipated liability and could not be claimed on a notional basis. The assessee's continuing dispute in arbitration did not defer deductibility once the liability had been ascertained and enforced. Any later remission or cessation would be dealt with separately under the applicable statutory scheme. The disallowance was therefore not sustainable, and the deduction was allowable in the year of quantification and recovery. Case-Laws Income Tax Tue, 30 Jul 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=67560