2008 (4) TMI 759

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....essee is in appeal before us against the order of the learned CIT(A) dt.14-7-2004 for assessment year 2001-02. First ground in the appeal is against the disallowance of Rs. 90 lakhs being provision for salaries. 2. The assessee manufactures and trades in chemicals. It returned a loss of Rs. 20,25,73,469 for the year under consideration. In the course of assessment proceedings, from the notes on....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....us through the memorandum of settlement arrived at with the workers and also showed us sample vouchers evidencing the payment. The contention of the learned Departmental Representative was that no details were given as to how the estimate was made and moreover, it being a contingent liability, the disallowance was justified. 4. We have duly considered the rival contentions and the material on r....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ace at all. It is a fate accompli and what remains is mere quantification of the liability. Therefore, the assessee was justified in making the provision on estimated basis and hence we delete the disallowance. 5. Next ground in the appeal is against the disallowance of Rs. 75,000/- being entrance fees to clubs for the officers of the assessee company. The Assessing officer made the disallowanc....