Claim of deduction of Provisions made - Basis of creating the ...

Case Laws Income Tax

February 7, 2022

Claim of deduction of Provisions made - Basis of creating the provision - uncertain liability or not - The above facts would substantiate that the provision has been made for material cost and/or compensation for cancellation/suspension of contracts which is incurred under contracts with its vendors entered pursuant to pre-existing commitments against supply contracts with customers, the latter having been subsequently cancelled/suspended. Hence, we hold that the provision is an allowable deduction. - AT

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Claim of deduction of Provisions made - Basis of creating the ...

Case Laws Income Tax

February 7, 2022

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