https://www.taxtmi.com/caselaws?id=20223 The liability of Rs. 82 lakhs claimed for the removal of overburden was not allowable as a deduction. The Tribunal determined that the liability was not an actual liability but rather contingent, as the expenditure for overburden removal could vary in the future. Citing precedents, the Tribunal emphasized that deductible expenditure must be towards an existing liability, not a contingent one. As the liability for overburden removal was not accurately estimated and was contingent, the Tribunal ruled in favor of the Revenue and against the assessee, denying the deduction. en-us Fri, 29 Oct 1993 00:00:00 +0530 Thu, 12 Nov 2009 15:29:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20223 The liability of Rs. 82 lakhs claimed for the removal of overburden was not allowable as a deduction. The Tribunal determined that the liability was not an actual liability but rather contingent, as the expenditure for overburden removal could vary in the future. Citing precedents, the Tribunal emphasized that deductible expenditure must be towards an existing liability, not a contingent one. As the liability for overburden removal was not accurately estimated and was contingent, the Tribunal ruled in favor of the Revenue and against the assessee, denying the deduction. Case-Laws Income Tax Fri, 29 Oct 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20223