accrued liability. According to learned counsel, accounting
treatment will not decide whether the warranty claim is actual
liability, accrued liability or contingent liability. Since ... assessee-company was towards a contingent
liability or towards a liability depending on a contingency, namely,
the life of a human-being. It was held
reduction or even extinction of the liability, would not have the effect of converting that liability into a contingent liability;
(iv) A trader computing ... Even if the liability is discharged at a future date, it will nevertheless be a liability which is certain and not contingent. This approach
estimated liability (i.e. discounted
present value of the liability under the scheme on a
scientific basis) and make a provision for such liability ... estimated liability (i.e. discounted present
value of the liability under the scheme on a scientific
basis) and make a provision for such liability
right and the liability to pay
gratuity continues to be a contingent liability qua the
employer. Since the amount of gratuity payable in any given ... made between an actual liability in praesenti and a
liability de futuro, which for the time being is only
contingent. The former is deductible
treated as set apart to meet a contingency. There is a
distinction between a contingent liability and a payment
depending upon a contingency. The question ... show that there
was no contingent liability but a liability depending on a
contingency, namely, the duration of life, the probabilities
of which were estimated
made between an actual liability in present and a liability de futuro which, for the time being, is only contingent. The former is deductible ... such liability is properly ascertainable and it is possible to arrive at a proper discounted present value. Even if the liability is a contingent liability
whether the liability is a present liability or a future liability. Even if amounts are set apart in respect of a purely contingent liability which ... known liability" means a liability known to exist as at the relevant date, in other words, a liability in praesenti. The liability in respect
Officer by agreeing with him that the said liability was not a present liability but a contingent liability on the happening of some events ... liability of the assessee to pay for the accumulated leave stands accrued. The said liability is a liability in praesenti and not a contingent liability
treated as set apart to meet a contingency. There is a distinction between a contingent liability and a payment depending upon a contingency. The question ... character to expense till the liability becomes real."
The Supreme Court held that where the liability itself is contingent, as contrasted from payment being
something happens which may affect that right or liability, 'therefore, the liability is not a contingent on happening. Its avoidance depends on the volition ... event which is not certain, existing liability can be reduced, in which case avoidance of liability becomes contingent.
47. Looking from any angle, it cannot
