Dismissing the appeal of the revenue the Court held that ; assessee estimated liability after taking all relevant factors into consideration, thus, addition on account of tariff adjustment was to be deleted as liability was not a contingent liability.(AY. 2006-07)
PCIT v. NHPC Ltd. (2018) 408 ITR 237/ 254 Taxman 438/ 167 DTR 44/ 304 CTR 612/ ( 2019) 415 ITR 321 (P&H)(HC)
S. 115JB : Book profit –Provision towards electricity tariff cannot be added to book profit as it is not a contingent liability .