https://www.taxtmi.com/caselaws?id=10408 The High Court held that the provision for future scheme loss claimed by the assessee was a contingent liability and not an allowable deduction for the assessment year 1988-89. The court agreed with the Income-tax Appellate Tribunal's finding that no liability had accrued in the relevant previous year, as the liability was conditional on the successful completion of the scheme by all subscribers. Therefore, the court ruled in favor of the Revenue and against the assessee, clarifying the distinction between accrued and contingent liabilities in the context of scheme losses under the mercantile system of accounting. en-us Wed, 19 Jan 2005 00:00:00 +0530 Wed, 15 Jul 2009 12:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=10408 The High Court held that the provision for future scheme loss claimed by the assessee was a contingent liability and not an allowable deduction for the assessment year 1988-89. The court agreed with the Income-tax Appellate Tribunal's finding that no liability had accrued in the relevant previous year, as the liability was conditional on the successful completion of the scheme by all subscribers. Therefore, the court ruled in favor of the Revenue and against the assessee, clarifying the distinction between accrued and contingent liabilities in the context of scheme losses under the mercantile system of accounting. Case-Laws Income Tax Wed, 19 Jan 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=10408