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TMI Blog2018 (11) TMI 1562X X X X Extracts X X X X X X X X Extracts X X X X ..... sioner of Income Tax [2009 (5) TMI 16 - SUPREME COURT OF INDIA] In the present case, in fact, the facts are even better. Not only that the liability had crystallized, the computation thereof was also readily available. Payment could not be made simply, because, the approval of Board of Directors which was necessary, was awaited. The liability had thus, crystallized. On the principle of accrued liability, the Assessee was well within its right to claim the expenditure. - decided against revenue - INCOME TAX APPEAL NO.673 OF 2016 - - - Dated:- 27-11-2018 - AKIL KURESHI M.S. SANKLECHA, JJ. Mr. A. R. Malhotra with Mr. N. A.Kazi, for the Appellant. Ms. Aasifa Khan, for the Respondent. P.C: Revenue is in appeal against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the CIT(A). We find from the order of the CIT(A) that the documents which were placed before the AO were not disputed by the AO, from which it is clear that the Director was entitled to performance related pay and as the actual amount had not been approved by the Board, the assessee had made provision for a crystallized liability and debited it in the P L Account. As soon as the approval was received from the Board of Directors in the meeting held on 15th June, 2009, the actual payments were made after deducting tax at source. From the above, it proves that the payment had to be made to the director, the liability had duly crystallized however, on non-availability of the approval it could not be quantified exactly. It is also s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade only because approval of the Board of Directors, was not forthcoming. 4. We do not find any error in the view of the Tribunal. The principle that when a liability has accrued but the computation thereof with precession, is not possible presently, the provision could be made on the basis of actuary by applying some scientific method or procedure, is well established principle. Reference in this respect may be to the decision of the Supreme Court in case of M/s. Rotork Controla India Pvt. Ltd.,v/s. Commissioner of Income Tax reported in 314 ITR 62. 5. In the present case, in fact, the facts are even better. Not only that the liability had crystallized, the computation thereof was also readily available. Payment could not be made ..... X X X X Extracts X X X X X X X X Extracts X X X X
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