Provision for expenses is an ascertained liability & eligible for deduction

Advertisement L’Oreal India Private Limited Vs Addl./Joint/Deputy/Assistant Commissioner of Income Officer (ITAT Mumbai) As per mercantile system of accounting, provision for expenses is an ascertained liability and the same is eligible for deduction while computing total income. Facts- L’Oreal India Pvt. Ltd., the assessee herein, is a wholly-owned subsidiary of L’Oreal S.A., France. It has entered into a license agreement with L’Oreal France, which awarded the exclusive right to the assessee to import, manufacture by itself or through another L’Oreal affiliate, market, distribut...