https://www.taxtmi.com/caselaws?id=23839 HC upheld the Tribunal's decision allowing deduction of the assessee's payment of revised salary and dearness allowance to its workmen for AY 1972-73. It held that, upon termination of prior awards, an impending liability to enhance service conditions had accrued during the relevant previous year. The board's provision of Rs. 1,00,000 was a prudent recognition of this accrued liability, and though the actual quantified payment of Rs. 76,680 was made after the year-end, it related to services rendered in that year. The expenditure was therefore revenue in nature, incurred wholly and exclusively for earning income, and allowable as a deduction. en-us Tue, 12 Sep 1989 00:00:00 +0530 Thu, 04 Dec 2025 12:05:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=23839 HC upheld the Tribunal's decision allowing deduction of the assessee's payment of revised salary and dearness allowance to its workmen for AY 1972-73. It held that, upon termination of prior awards, an impending liability to enhance service conditions had accrued during the relevant previous year. The board's provision of Rs. 1,00,000 was a prudent recognition of this accrued liability, and though the actual quantified payment of Rs. 76,680 was made after the year-end, it related to services rendered in that year. The expenditure was therefore revenue in nature, incurred wholly and exclusively for earning income, and allowable as a deduction. Case-Laws Income Tax Tue, 12 Sep 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=23839