https://www.taxtmi.com/caselaws?id=5396 A provision for bonus set aside after the accounting year could not be deducted because the liability had not accrued during that year. The bonus obligation arose only after the year-end, following a subsequent government notification, so no existing liability had fastened on the assessee when the accounts closed. The amount was therefore only a contingent provision, not an allowable deduction under the Indian Income-tax Act, 1922. The Court affirmed that a mere provision for a later-accruing liability is not deductible on identical facts. en-us Thu, 18 Feb 1993 00:00:00 +0530 Mon, 24 Nov 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5396 A provision for bonus set aside after the accounting year could not be deducted because the liability had not accrued during that year. The bonus obligation arose only after the year-end, following a subsequent government notification, so no existing liability had fastened on the assessee when the accounts closed. The amount was therefore only a contingent provision, not an allowable deduction under the Indian Income-tax Act, 1922. The Court affirmed that a mere provision for a later-accruing liability is not deductible on identical facts. Case-Laws Income Tax Thu, 18 Feb 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5396