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

....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 ₹ 90 lakhs being provision for salaries. 2. The assessee manufactures and trades in chemicals. It returned a loss of ₹ 20,25,73,469 for the year under consideration. In the course of assessment proceedings, from the notes on accounts it was noticed that t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....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 record. The undisputed facts are....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....li 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 ₹ 75,000/- being entrance fees to clubs for the officers of the assessee company. The Assessing officer made the disallowance by observing that the asses....