Loss arising on ‘Index linked debentures’ as on balance sheet date is allowable: ITAT

IT : The methodology adopted by assessee to determine the rate of return on debentures on basis of Nifty level prevailing on the date of maturity was only a different method of computing the interest liability of assessee. It is an accepted and prudent accounting practice to provide for all known liabilities and losses as on the date of balance sheet. Thus, the loss provided by assessee on the date of balance sheet due increase in level of Nifty index vis-à-vis the level existed at the time of a