Disallowance on account of Royalty - estimated liability - What ...

Case Laws Income Tax

April 7, 2021

Disallowance on account of Royalty - estimated liability - What should be certain is the incurring of the liability. It should also be capable of being estimated with reasonable certainty though the actual quantification may not be possible. If these requirements are satisfied the liability is not a contingent one. The liability is in present though it will be discharged at a future date. - Deduction allowed - AT

View Source

← Previous Next →

Disallowance on account of Royalty - estimated liability - What ...

Case Laws Income Tax

April 7, 2021

You may also like:

Assessee's unaccounted sales were estimated based on notebooks, diaries, and WhatsApp conversations. Only real income can be taxed. While unaccounted sales existed,...

Disallowance on account of provision for expenses made under normal provisions of the Act as well as in the computation of book profits u/s.115JB - The assessee company...

Ad hoc disallowance of 10% of expenses - Since the AO or the Ld. CIT(A) has not rejected the books of account of the assessee they could not have estimated (ad hoc...

Disallowance of provision for maintenance and free service/warranty in computation of book profit u/s 115JB - such liabilities cannot be regarded as contingent...

Voluntary Reporting of Estimated Current Income and Advance Tax Liability - CBDT issues draft notification

Addition on account of Repair and Maintenance of Plant and Machinery on estimate basis - sale of scrap - The assessee brought on record a chart of sale made of scrap in...

Allowability of Derivative loss - separate addition on account of alleged payment of margin monies on an estimated basis - The Tribunal emphasized that in derivative...

Disallowance of construction expenditure incurred after the issue of occupation certificate (OC) - It is seen that the nature of work which was incurred by the assessee...

Revision u/s 263 by CIT - difference in guidelines value for plots purchase - Find no merit in this contention of assessee because books of account are not maintained,...

Deduction u/s 10A - Adhoc disallowance of professional expenses, electricity charges and miscellaneous expenses - It is not in dispute that the aforesaid administrative...

Unexplained expenditure - certain entries were found unmatched / not accounted for in the books of accounts in the expense ledger of the assessee - The assessee...

Computation of book profits for the purpose of computing the tax liability u/s. 115JB - two sets of books of account - there is no material on record indicating the...

Estimation of profit - addition of receipts pertaining to contract receipts not shown in the total turnover and cash deposits into SBI Bank account - Department must act...

Liability for payment of arrears of salary - As a certain liability for the impugned assessment year. The assessee company can make provision for the certain liability...

Disallowance of travelling expenses - AO while disallowing the expenses has noted that the expenses were incurred on account of trip by cruise ship by director and his...

Quick Updates: