Assessee made provision of certain amount on account of insurance claim incurred but not reported and claim incurred but not enough reported. Hence, a provision was made for all unsettled claims on basis of claim lodged by insured persons. AO disallowed the provision. On appeal CIT(A) allowed the claim. On appeal by the revenue the 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. Provision is held to be not allowable.  (AY. 2003-04 to 2007-08)