Court Rules Transit Breakage Provision Unjustifiable; Lacks Scientific Basis, Not Recognizable Under Accounting Standard 29.

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....Provision for transit breakages - There is no reasonable scientific method adopted by the Assessees to estimate the transit breakages so as to justify creating of provision for such breakages.The provision would, in the circumstances, be a provision for a contingent liability and, therefore, in terms of the AS 29 ought not be recognised. - HC....