https://www.taxtmi.com/caselaws?id=365953 A provision for damaged goods is deductible only where there is a present obligation from a past event, an outflow of resources is probable, and the amount can be reliably estimated. Applying this settled principle and following its earlier ruling in the assessee's own case, the Gujarat High Court held that the Assessing Officer's disallowance was unsustainable. The addition made on account of the provision for damaged goods was therefore rightly deleted, and the issue was decided in favour of the assessee and against the Revenue. en-us Tue, 21 Aug 2018 00:00:00 +0530 Mon, 27 Aug 2018 07:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=365953 A provision for damaged goods is deductible only where there is a present obligation from a past event, an outflow of resources is probable, and the amount can be reliably estimated. Applying this settled principle and following its earlier ruling in the assessee's own case, the Gujarat High Court held that the Assessing Officer's disallowance was unsustainable. The addition made on account of the provision for damaged goods was therefore rightly deleted, and the issue was decided in favour of the assessee and against the Revenue. Case-Laws Income Tax Tue, 21 Aug 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=365953