Accounting Standard AS 7: Assessee Must Account for Future Contract Expenses, Even if Not Yet Liabilities.

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....Disallowance on account of provision for future loss being unascertained liability - in fixed price contracts, the assessee having credited all its revenue, as per the contract, has to provide for all the foreseeable expenses which it is bound to incur as per the contract. Accounting Stand ard AS 7 provides for such an eventuality. - Order of CIT(A) allowing the claim confirmed. - AT....