https://www.taxtmi.com/caselaws?id=71901 The Tribunal ruled that the provision for liquidated damages claimed by the assessee was consistent with the mercantile system of accounting and relevant accounting standards. It recognized the liability as definite, arising from contractual obligations, despite the exact amount being undetermined. The Tribunal remanded the case to the Assessing Officer (AO) to ascertain the accrued liability for the relevant year, allowing the deduction based on contractual terms. The AO was instructed to adjust any surplus or shortage in the provision in subsequent years accordingly. en-us Fri, 02 Mar 2007 00:00:00 +0530 Thu, 08 Feb 2024 11:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=71901 The Tribunal ruled that the provision for liquidated damages claimed by the assessee was consistent with the mercantile system of accounting and relevant accounting standards. It recognized the liability as definite, arising from contractual obligations, despite the exact amount being undetermined. The Tribunal remanded the case to the Assessing Officer (AO) to ascertain the accrued liability for the relevant year, allowing the deduction based on contractual terms. The AO was instructed to adjust any surplus or shortage in the provision in subsequent years accordingly. Case-Laws Income Tax Fri, 02 Mar 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=71901