value of current liability. There may be a
possibility of a contingent liability not appearing in the books of account,
which ... point of time. Unless there is a positive reference to any contingent
liability, the liabilities appearing in the books of account represent the
amount actually
wholly and clearly contingent upon certain specific conditions being fulfilled and hence according to him it was a contingent liability. Hence he disallowed assessee ... events giving rise to the liability have taken place. Till the last event occurs, the liability is a contingent one.
14. Paragraph
existing liability. In the instant case
such liability is not quantified. Such provision is
similar to liability only contingent in nature, not
deductable and hence ... reduction or even extinction of the liability, would
not have the effect of converting that liability into a contingent
liability ;
(iv) A trader computing
during the assessment year and cannot be said to be a contingent liability or as anticipated further loss.
19. Similar view has been expressed ... order of assessing officer by observing that the liability is contingent and contingent liability is not allowable.
25.1. From the facts of the present case
contingent liability or accrued liability. The liability might arise. But the liability might make discharge of that liability dependent upon a contingency. His- Lordship further ... contingencies mentioned in the sub-clauses of Section 4 which have been set out hereinbefore. Those contingencies were so very contingent that those contingencies
profits and other surpluses, not designed to meet a liability, contingency, commitment or diminution in value of assets known to exist at the date ... liability to pay in praesenti or in futuro an ascertainable sum of money and that a liability to pay income-tax was a present liability
permissible even though the liability in question may be only a contingent liability provided a real and true estimate can be made of the present ... value of that contingent liability. Counsel on behalf of the revenue, on the other hand, contended that such deductions are not permissible. He urged that
departmental representatives that the payment for a tax is a contingent liability. If income accrues, the liability to tax also accrues with ... contingent liability is not a debt is now well settled. If a liability is to arise in future on the happening of a contingency which
conduct in treating the liability as contingent should be taken into account.
A contingent liability is one which could
arise on the happening of some ... liability exists. If the law is clear that there is no statutory liability, there is no question of any liability whatsoever whether ascertained or contingent
year the AAC took the view that it was only a. contingent liability, and as such the entire claim for the gratuity of the previous ... gratuity was a contingent liability.
8. The view of the Tribunal that the liability for payment of gratuity was a contingent liability, and as such
