https://www.taxtmi.com/caselaws?id=785361 Provision for projected salary increase due to implementation of a pay commission was held to be an accrued liability because the obligation arose from services already rendered and the employer was bound to implement sanctioned recommendations; therefore the provision was estimable based on past practice and allowed as a deduction. The liability's quantification pending formal government sanction did not render it contingent, and consistent historical accounting practice and the binding nature of the pay commission recommendations supported allowance of the provision. en-us Tue, 13 Jan 2026 00:00:00 +0530 Thu, 22 Jan 2026 08:41:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=785361 Provision for projected salary increase due to implementation of a pay commission was held to be an accrued liability because the obligation arose from services already rendered and the employer was bound to implement sanctioned recommendations; therefore the provision was estimable based on past practice and allowed as a deduction. The liability's quantification pending formal government sanction did not render it contingent, and consistent historical accounting practice and the binding nature of the pay commission recommendations supported allowance of the provision. Case-Laws Income Tax Tue, 13 Jan 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=785361