Provision for wage arrears is an ascertained liability: HC

CIT Vs Metropolitan Transport Corporation (Chennai) Ltd. (Madras High Court) Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was correct in holding that the provision for wage arrears of Rs.5.80 crores is an ascertained liability, notwithstanding the fact that the said provision has been accounted on cash basis? In the case of Calcutta Co. Ltd. v. CIT [1959] 37 ITR 1, this Court has held that the liability on the assessee having been imported, the liability would be an accrued liability and would not convert into a conditional one merely because the...