Allowing the appeal of the assessee the Tribunal held that a loss is brought to the books at the point of time when it can be reasonably foreseen. This approach underlies the accountancy principle of conservatism which was duly recognised by the Supreme Court in the case of Chainrup sampatram v. CIT( 1953) 24 ITR 481 (SC) .( AY.2008-09, 2009-10)
Rasna P. Ltd. v. DCIT (2018) 63 ITR 28 (SN)(Ahd) (Trib)
S.28(i): Business loss — Litigation and bona fide dispute about goods at Bangladesh border – Foreseeable Loss — Held to be allowable . [ S.37(1), 145 ]