Assessee is engaged in business of manufacturing copper rods, copper lathodes, phosphoric acid, sulphuric acid, power slime, dore etc.\u00a0 Assessee made a provision on account of expenditure towards purchase of copper concentrate, on basis of provisional invoices issued before final prices were fixed.-When final amount was realised at end of year, difference in provisioning made by assessee and final amount of purchase was adjusted in debit and credit side of profit & loss account accordingly. The method followed by the assessee is accepted by the AO. PCIT invoked revision jurisdiction on grounds that assessee was not entitled for deduction of provision made on account of expenditure towards copper purchase as liability was contingent. On appeal the tribunal held that the assessee had created provision in books of account based on price of copper concentrate at London Metal Exchange which was. was certified by auditors as well as approved by shareholders of company and \u00a0this method of making provision by assessee was regularly followed by assessee since financial year 2003-04 which had never been challenged by other statutory authority including Ministry of Corporate Affairs.\u00a0 Accordingly on facts, provision made by assessee on account of expenditure for copper concentrate purchase was to be allowed. \u00a0(AY. 2010-11)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 263 : Commissioner-Revision of orders prejudicial to revenue\u2013 Provision for expenditure \u2013 Contingent-provision was certified by auditors as well as approved by shareholders of company-Revision to disallow the provision as contingent id held to be not valid. [S. 37(1), 145]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-9986","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-2B4","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/9986","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=9986"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/9986\/revisions"}],"predecessor-version":[{"id":9987,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/9986\/revisions\/9987"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=9986"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=9986"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=9986"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}