TaxTMI 
TaxTMI 
2013 (10) TMI 80
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....sual and insouciant approach adopted by the Assessing Officer, who had made additions of Rs.6,75,64,435/-, to the returned income of Rs.85,970/- in an order dated 31st March 2007, which is bereft of contentions being noticed and rejected by a reasoned discussion. 3. The Assessing Officer applied Rule 8D without even mentioning that pre-conditions for invoking Rule 8D were satisfied. He did not take into consideration the submission of the respondent-assessee that the deposit of Rs.2 crores in the Kotak Flour Short-Term Weekly Dividend Option was made out of share allotment money and the money deposited did not represent loan. These facts have been noticed by the appellate authorities, including the tribunal. 4. The assessee had made inves....
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....sallowance of provision for current liabilities From the details furnished in respect of provision for expenses, it is seen that the assessee has made the following provisions, which are not admissible:- Provision for Salary 2006-07 Rs 1,86,651 Electricity expenses for year 2006-07 now provided Rs 2,39,80,283 AMC charges of Serviont Global dialer Rs 10,29,643 Total Rs 2,51,96,577 Since this provision is not allowable, the amount of Rs 2,51,96,577 is disallowed and added to the income of the assessee. Since I am satisfied that the assessee has furnished inaccurate particulars of its income, penalty proceedings under section 271(1)(c) are being initiated separately." 7. This is the entire discussion on the said addition, in the asse....
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....ing estimated with reasonable certainty though the actual quantification may not be possible. If these requirements are satisfied the liability is not a contingent one. The liability is in present though it will be discharged at a future date. It does not make any difference if the future date on which the liability shall have to be discharged is not certain . . . A few principles were laid down by this court, the relevant of which for our purpose are extracted and reproduced as under: (i) For an assessee maintaining his accounts on the mercantile system, liability already accrued, though to be discharged at a future date, would be a proper deduction while working out the profits and gains of his business, regard being had to the accepted....