https://www.taxtmi.com/caselaws?id=60575 The ITAT allowed the appeal, directing the AO to allow the deduction for the provision for an increase in salaries and wages. The ITAT held that the provision for revision of pay scale of officers was based on existing guidelines and government approval, constituting a known liability that required recognition despite the uncertainty of the exact amount. The ITAT emphasized the principle of prudence and cited a Supreme Court case to support its decision, concluding that the liability had definitely arisen and was not contingent. en-us Mon, 02 Sep 2002 00:00:00 +0530 Fri, 07 Jan 2011 10:10:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=60575 The ITAT allowed the appeal, directing the AO to allow the deduction for the provision for an increase in salaries and wages. The ITAT held that the provision for revision of pay scale of officers was based on existing guidelines and government approval, constituting a known liability that required recognition despite the uncertainty of the exact amount. The ITAT emphasized the principle of prudence and cited a Supreme Court case to support its decision, concluding that the liability had definitely arisen and was not contingent. Case-Laws Income Tax Mon, 02 Sep 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=60575