ACIT v. United India Insurance Co. Ltd. (2018) 67 ITR 191 /195 TTJ 65 (UO) (Chennai) (Trib.)

S. 37(1) : Business expenditure—Compensation payable—Unascertainable liability—Not allowable as deduction.[S. 145]

Tribunal held that, Liability to make payment of insurance claim accrued only in year in which loss or damage was ascertained and compensation payable to insured person was determined. Since in instant case amount of compensation payable to insured person was not determined during year, same could not be allowed merely because incident happened during year. ( AY. 2003-04 to 2010-11 )