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2012 (5) TMI 368 - MADRAS HIGH COURTAccrual of expenses - whether provision for hank yarn obligation is allowable as a deduction in this assessment year when the assessee has not fulfilled its obligation and textile commissioner had extended the time for fulfilment till 31.3.95 - held that:- when the liability admitted is of reasonable certainty, the mere fact that the actual quantification might take place in the next year, per se, would not stand in the way of the assessee being granted the deduction. The assessee, admittedly, is maintaining the account on mercantile basis. In that event, the decision of the Apex Court in Bharat Earth Movers Vs. C.I.T.) (2000 (8) TMI 4 (SC)), directly applies to the facts of the case. - Decided in favor of assessee.
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