Provision for payment of compensation with respect to defected machines sold against which complaints were filed and were pending settlement, compensation claimed as the expense was based on the actual occurrence of financial incidence purely related to business activities same was examined during original scrutiny assessment, reassessment order was to be quashed. (AY. 2008-09)
PCIT v. NESCO Ltd. [2023] 291 Taxman 286 (Bom)(HC)
S. 147 : Reassessment – With in four years – No tangible material – Business expenditure -Compensation- Provision for compensation – Pending for settlement – Reassessment is held to be bad in law. [S. 37(1), 145, 148, Art. 226]