Provision for transit breakages - There is no reasonable ...

Court Rules Transit Breakage Provision Unjustifiable; Lacks Scientific Basis, Not Recognizable Under Accounting Standard 29.

October 8, 2015

Case Laws Income Tax HC

Provision for transit breakages - There is no reasonable scientific method adopted by the Assessees to estimate the transit breakages so as to justify creating of provision for such breakages.The provision would, in the circumstances, be a provision for a contingent liability and, therefore, in terms of the AS 29 ought not be recognised. - HC

View Source

← Previous Next →

Provision for transit breakages - There is no reasonable ...

Court Rules Transit Breakage Provision Unjustifiable; Lacks Scientific Basis, Not Recognizable Under Accounting Standard 29.

October 8, 2015

Case Laws Income Tax HC

You may also like:

The assessee failed to substantiate the provision made for freight, material handling charges, and IT support expenses as an allowable expenditure. The assessee merely...

Benami Property Transactions - Real/original owner - provisional attachment order issued u/s 24(3) of the Benami Transactions Act, 1988 - The High Court found in favor...

The Appellate Tribunal addressed various issues: disallowance of provisions for waste disposal expenses due to lack of evidence and scientific basis, upheld disallowance...

Validity of provisional attachment order - benefit of Input Tax Credit availed from invoices issued from non-existing firms - It observes that the impugned order lacks...

The adjudicating authority is bound to explain the alleged contraventions to the person proceeded against or their legal representatives. Rule 4(4) mandates...

Import / Export of services - with effect from 20/06/2012 a specific Rule has been prescribed called Place of Provision of Service Rules, 2012. Though these Rules are...

The High Court held that respondent No. 3 cannot avoid deciding the petitioners' application dated 20 December 2023 seeking an advance ruling on the taxability of sale...

Availment of CENVAT Credit - Non maintenance of separate account - When it is impossible to comply with the provisions of sub-rule (2) of Rule 6, it would not be...

The case pertains to the disallowance of a provision for contract losses by the CIT(A) and AO, who erroneously concluded it as an unascertained liability not deductible...

Provision of facilities/amenities by units under Rule 11(5) of the SEZ Rules

Anti-Profiteering Authority - Certain provisions under Rules 120, 122 and 124 of GST Rules 2017 amended.

Verification Certificate - Certificate under provisions of rule 114(4) of Income Tax Rules, 1962

Provision for transit breakages - The provision would, in the circumstances, be a provision for a contingent liability and, therefore, in terms of the AS 29 ought not be...

Provision for warranty expenses computed on basis of past experience and scientific basis is allowable. Assessee applied formula for provision though no past history was...

Provision of warranty - accounting policy - the provisions of warranty made by the assessee company was on the basis of the scientific and consistent method - No...

Quick Updates: