https://www.taxtmi.com/caselaws?id=10914 The court upheld the Tribunal's decision, affirming that the provision created for repairs of transformers was a permissible deduction under section 37(1) of the Income-tax Act, 1961, as it was towards a definite liability accrued at the time of sale. The court concluded that the provision was for an ascertained liability and not contingent, dismissing the Department's appeals. The decision was supported by legal precedents emphasizing that liabilities definitely arising in the accounting year should be allowed as deductions, even if quantified and discharged in the future. en-us Thu, 04 Sep 2003 00:00:00 +0530 Mon, 27 Jul 2009 17:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=10914 The court upheld the Tribunal's decision, affirming that the provision created for repairs of transformers was a permissible deduction under section 37(1) of the Income-tax Act, 1961, as it was towards a definite liability accrued at the time of sale. The court concluded that the provision was for an ascertained liability and not contingent, dismissing the Department's appeals. The decision was supported by legal precedents emphasizing that liabilities definitely arising in the accounting year should be allowed as deductions, even if quantified and discharged in the future. Case-Laws Income Tax Thu, 04 Sep 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=10914