2019 (3) TMI 64

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ot entitled for deduction of the provision of the liability with respect to construction of municipal staff quarters/ road depot and compound wall [Rs.1,22,10,000/] while computing income from the project under the Slum Rehabilitation Scheme?" 2. Brief facts are as under: Appellant-Assessee is a partnership firm. Assessee was awarded a contract for slum redevelopment project by Slum Rehabilitation Authority. Under such contract, assessee in addition to developing assigned plot, would also construct 1140.52 sq. mtr of built-up premises for municipal staff quarters and 54.99 sq.mtrs towards road depot. The assessee claimed an expenditure of Rs. 1.22 Crores (rounded of) towards this liability on mercantile system of accounting, contendin....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ame was contingent upon the Slum Rehabilitation Authority, handing over the vacant possession of a part of land where such construction would be carried out. The Tribunal, in particular, noted that, till date, such possession was not handed over to the assessee. Thus, the view of the Tribunal was that, the liability was a contingent one, depending upon assessee being put in vacant possession of land where construction would be carried out. We do not find that, the Tribunal has committed any error. It is undoubtedly true that, in case of an assessee following mercantile system of accounting, any liability which even though may not have been discharged during the financial year relating to Assessment Year in question, would yet be an allow....