https://www.taxtmi.com/caselaws?id=69882 The ITAT Madras-B held that a provision for salary arrears arising from an ongoing wage revision process was deductible as an accrued liability because the obligation had arisen and could be estimated with reasonable certainty. It also accepted a change in valuation of closing stock and recognition of escalation claims on receipt basis where governmental approval and quantum were uncertain. Mining and processing lignite was treated as production for section 80-IB purposes because the activity transformed the mineral into a commercially usable product, though indirect Stage-II costs required recomputation. Grossed-up income-tax reimbursement was held not to form part of income derived from the undertaking and was excluded from deduction. en-us Wed, 18 Aug 2004 00:00:00 +0530 Mon, 01 Jul 2024 17:26:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=69882 The ITAT Madras-B held that a provision for salary arrears arising from an ongoing wage revision process was deductible as an accrued liability because the obligation had arisen and could be estimated with reasonable certainty. It also accepted a change in valuation of closing stock and recognition of escalation claims on receipt basis where governmental approval and quantum were uncertain. Mining and processing lignite was treated as production for section 80-IB purposes because the activity transformed the mineral into a commercially usable product, though indirect Stage-II costs required recomputation. Grossed-up income-tax reimbursement was held not to form part of income derived from the undertaking and was excluded from deduction. Case-Laws Income Tax Wed, 18 Aug 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=69882