https://www.taxtmi.com/caselaws?id=788503 Provision for contribution to a cadre fund was analysed for deductibility as business expenditure under Section 37 of the Income-tax Act, 1961. The note applies the test of a present obligation arising from a past event, probable outflow of resources, and reliable estimation under AS 29/Ind AS 37, and treats a reasonably quantified business liability as deductible even if future discharge is uncertain. It also refers to statutory or institutional cadre arrangements, actual fund utilisation, accounting treatment, and consistency with earlier years, together with coordinate bench precedent on identical facts. On that basis, the provision is regarded as an identifiable business liability rather than a contingent liability. en-us Fri, 06 Feb 2026 00:00:00 +0530 Fri, 20 Mar 2026 10:42:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=788503 Provision for contribution to a cadre fund was analysed for deductibility as business expenditure under Section 37 of the Income-tax Act, 1961. The note applies the test of a present obligation arising from a past event, probable outflow of resources, and reliable estimation under AS 29/Ind AS 37, and treats a reasonably quantified business liability as deductible even if future discharge is uncertain. It also refers to statutory or institutional cadre arrangements, actual fund utilisation, accounting treatment, and consistency with earlier years, together with coordinate bench precedent on identical facts. On that basis, the provision is regarded as an identifiable business liability rather than a contingent liability. Case-Laws Income Tax Fri, 06 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=788503