Held that provision for wage arrears was an ascertained liability and allowable as deduction notwithstanding the fact that the said provision has been accounted on cash basis. Followed Bharat Earth Movers v. CIT (2000) 245 ITR 428 (SC) Calcutta Co. Ltd. v. CIT (1959) 37 ITR 1 (SC). (AY. 2006-07)
CIT v. Metropolitan Transport Corp. (Chennai) Ltd. (2021) 280 Taxman 249 (Mad.)(HC)
S. 37(1) : Business expenditure-Provision for wage arrears-Allowable as deduction. [S. 28(i), 145]