https://www.taxtmi.com/caselaws?id=352305 A provision for development expenses on sale of plots was treated as an allowable deduction where the developer had an accrued obligation to carry out internal infrastructure work, including roads, water supply, electrification, sewerage and parks. The liability was regarded as ascertained rather than contingent because it arose on sale, was supported by a detailed estimate, and was consistent with the assessee's historical accounting practice. Applying the mercantile system and the matching principle, the expenditure was required to be recognised against revenue already booked. Any excess provision after completion remained adjustable under the law. en-us Tue, 05 Dec 2017 00:00:00 +0530 Tue, 12 Dec 2017 09:35:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=352305 A provision for development expenses on sale of plots was treated as an allowable deduction where the developer had an accrued obligation to carry out internal infrastructure work, including roads, water supply, electrification, sewerage and parks. The liability was regarded as ascertained rather than contingent because it arose on sale, was supported by a detailed estimate, and was consistent with the assessee's historical accounting practice. Applying the mercantile system and the matching principle, the expenditure was required to be recognised against revenue already booked. Any excess provision after completion remained adjustable under the law. Case-Laws Income Tax Tue, 05 Dec 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=352305