2011 (2) TMI 1193

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....pondent :SRI.A.KUMAR   JUDGMENT   Ramachandran Nair, J.   The question raised is whether the Tribunal was justified in allowing a provision for liability created by the respondent assessee towards differential tariff payable to the KSEB for the assessment years 2000-2001 and 2001-2002. We have heard senior counsel appearing for the revenue and Adv A. Kumar appearing for the....

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....ght to be made in the accounts in the year in which the bills are raised and the assessee though contested the matter by filing writ petition had in fact made part payments.   However, strangely Tribunal has not considered any of these matters and allowed the claim just by stating that if bill is reversed or cancelled the amount could be assessed under Section 41(1) of the Income Tax Act. ....

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....uence would have been disconnection by the Board and in the absence of any contest and interim orders issued by the Court or disconnection the assessee has no justification to debit P & L account merely because some arrear bills are received from the KSEB. Standing counsel submitted that genuineness or correctness of the bills itself should be doubted because KSEB did not raise the bills for the r....