https://www.taxtmi.com/caselaws?id=392540 The ITAT upheld the CIT (A)'s decision in a tax case involving disallowance of expenditure towards a Special Purpose Vehicle (SPV) and mine closure obligation. The ITAT determined that the expenditure towards the SPV was compensatory and allowable under Section 37(1) of the Income Tax Act, categorizing it as a business expenditure. Additionally, the ITAT reaffirmed that mine closure obligations are ascertained liabilities, not contingent ones, and therefore deductible. The Tribunal dismissed the Revenue's appeal, maintaining the lower court's ruling in favor of the assessee on both issues. en-us Wed, 19 Feb 2020 00:00:00 +0530 Fri, 21 Feb 2020 11:52:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=392540 The ITAT upheld the CIT (A)'s decision in a tax case involving disallowance of expenditure towards a Special Purpose Vehicle (SPV) and mine closure obligation. The ITAT determined that the expenditure towards the SPV was compensatory and allowable under Section 37(1) of the Income Tax Act, categorizing it as a business expenditure. Additionally, the ITAT reaffirmed that mine closure obligations are ascertained liabilities, not contingent ones, and therefore deductible. The Tribunal dismissed the Revenue's appeal, maintaining the lower court's ruling in favor of the assessee on both issues. Case-Laws Income Tax Wed, 19 Feb 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=392540