https://www.taxtmi.com/caselaws?id=258596 The court held that the provision for contingency made by the assessee was an allowable deduction under the Income Tax Act. The court distinguished between contingent and ascertained liabilities, emphasizing that under the mercantile system of accounting, liabilities accrued due are deductible. Previous judgments supported the deduction of accrued liabilities, leading to the allowance of the provision as an ascertained liability. The court ruled in favor of the assessee, allowing the deduction and rejecting the revenue's arguments. en-us Tue, 13 Jan 2015 00:00:00 +0530 Wed, 12 Aug 2015 17:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=258596 The court held that the provision for contingency made by the assessee was an allowable deduction under the Income Tax Act. The court distinguished between contingent and ascertained liabilities, emphasizing that under the mercantile system of accounting, liabilities accrued due are deductible. Previous judgments supported the deduction of accrued liabilities, leading to the allowance of the provision as an ascertained liability. The court ruled in favor of the assessee, allowing the deduction and rejecting the revenue's arguments. Case-Laws Income Tax Tue, 13 Jan 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=258596