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M/S. Rotork Controla India (P) Ltd vs Commnr. Of Income Tax, Chennai on 12 May, 2009

In our considered view , the assessee company is entitled for claiming expenses for all known and ascertained liabilities which have crystallized prior to the closure of the relevant previous year as per the mandate of the Act based on actual rendition of services prior to the closure of the relevant previous year and also keeping in view the principles of matching concept and the decision of the Hon'ble Supreme Court in the case of Rotork Control India Private Limited(supra), which is also the assertion of the ld counsel for the assessee company. But, these are all findings of fact which can be arrived at or appreciated based on the examination and verification of the facts on merits.
Supreme Court of India Cites 20 - Cited by 431 - S H Kapadia - Full Document

Commissioner Of Income Tax vs Triveni Engineering & Industries Ltd. on 5 August, 2010

and CIT v. Triveni Engineering & Industries Limited, 196 Taxman 94(Del.). Thus the ld. Counsel submitted that provisions for expenses of Rs.11,15,000/-- should be allowed as the provisions for expenses of Rs.11,15,000/- are made on best estimate basis based on Prudence by making an estimate on the basis of services actually availed by the assessee company till the end of the year. It was submitted that to the extent of provisions for expenses of Rs.11,15,000/- so made in the impugned 8 ITA 7324/Mum/2012 assessment year, the assessee company has reversed the same in the next year and to that extent expenditure is claimed lower by that amount of Rs.11,15,000/- in next year and hence the impact is revenue neutral and no prejudice is caused to the Revenue. It is submitted that if the provisions for expenses of Rs.11,15,000/- are not allowed in the impugned assessment year, then the entire expenses shall be allowed in the subsequent assessment year.
Delhi High Court Cites 14 - Cited by 60 - A K Sikri - Full Document
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