https://www.taxtmi.com/caselaws?id=801178 Revision for inadequate inquiry may apply where a deduction for contributions to a Core Settlement Guarantee Fund is allowed without examining whether the payment discharges an accrued and ascertained liability or creates a contingent reserve. Explanation 2(a) treats an assessment as erroneous and prejudicial to Revenue when required inquiry or verification is absent. Examination should address whether the contribution augments a corpus for possible clearing-member defaults, whether interest is earned from that corpus, and whether any identified default has crystallised a liability. Deductibility as revenue expenditure requires independent examination, and a limited revision may direct fresh verification. en-us Wed, 30 Sep 2026 00:00:00 +0530 Fri, 16 Oct 2026 05:20:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=801178 Revision for inadequate inquiry may apply where a deduction for contributions to a Core Settlement Guarantee Fund is allowed without examining whether the payment discharges an accrued and ascertained liability or creates a contingent reserve. Explanation 2(a) treats an assessment as erroneous and prejudicial to Revenue when required inquiry or verification is absent. Examination should address whether the contribution augments a corpus for possible clearing-member defaults, whether interest is earned from that corpus, and whether any identified default has crystallised a liability. Deductibility as revenue expenditure requires independent examination, and a limited revision may direct fresh verification. Case-Laws Income Tax Wed, 30 Sep 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=801178