2009 (12) TMI 51

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....section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Madras 'A' Bench dated 27.10.2006 in ITA No.273/Mds/2005 for the assessment year 2001-02. For appellant: Mr.K.Subramaniam, Standing Counsel for Income Tax Department For respondent: Dr.Anitha Sumanth JUDGMENT (Judgment of the Court was delivered by K.RAVIRAJA PANDIAN, J.) The appeal is f....

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....peal before the Commissioner of Income Tax (Appeals) and the Commissioner of Income Tax (Appeals) directed the assessing officer to modify the order and pass necessary consequential order. Against that order, the department preferred an appeal before the Tribunal and the Tribunal, following the assessee's own case for the assessment year 2000-01 and following the decision of this Court in CIT v. B....

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....e the assessee had a present obligation as a result of past events resulting in an outflow of resources and a reliable estimate could be made of the amount of the obligation.  The value of the contingent liability like the warrant expense, if properly ascertained and discounted on accrual basis, can be an item of deduction under section 37 of the Act. The principle of estimation of the contin....

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....s receipts under section 37 of the Act.  5. Following the said judgment, this Court in assessee's own case in the case of CIT III v. M/s. FL Smedth Ltd., Tax Case (Appeal) No.341 of 2004 by order dated 09.06.2009, after extracting paragraph 7 of the judgment of Supreme Court cited supra, answered the question of law in favour of the assessee and against the revenue.   6. It is....