Accrued Business Liability Deductible Despite Future Payment: ITAT Mumbai

ITO Vs Svadeshi Enterprises (ITAT Mumbai) The appeal by the Revenue and the Cross Objection by the assessee arose from the order of the CIT(A)/NFAC for Assessment Year 2016-17. The Revenue challenged the deletion of a disallowance of ₹8 crore claimed by the assessee as liability payable to occupants/tenants, contending that it represented a contingent liability that had not crystallized during the relevant year. The assessee, a partnership firm engaged in the business of builders and developers, had received compensation of ₹12.25 crore in connection with a property at Chunabhatti, Mumbai,...