Where the liability for expenditure incurred during the year cannot be determined with certainty, it was held that as per the provisions of AS-1, the assessee is entitled to make an appropriate provision for the liability on the basis of best estimate made with the information available. (AY. 2008-09)
Dy. CIT v. AGC Net Work Ltd. (2020) 192 DTR 273 / 204 TTJ 850 (Mum.)(Trib.)
S. 145 : Method of accounting-Books of Accounts-Change in accounting policy-Provision for such liabilities that cannot be determined with certainty is to be determined based on best estimate.