Wage Arrears Deduction Allowed as Liability Accrued from Pay Revision Effective Date

ACIT Vs Chennai Central Cooperative Bank Ltd. (ITAT Chennai) The appeal filed by the Revenue pertains to Assessment Year 2017–18 and challenges the order of the Commissioner of Income Tax (Appeals), which deleted the disallowance made by the Assessing Officer in respect of provision for wage arrears. During assessment proceedings, the Assessing Officer observed that the assessee had debited an amount of Rs. 8,50,91,477 under the head “Contingencies and Provisions” in its Profit and Loss account, representing provision for wage arrears. Upon enquiry, the assessee explained that the provis...