Taxation on provision

Yasaswi Gomes new (Finance ) (4492 Points)

17 May 2023  

Hi

A mine and accident happened injuring 20 worksmen. When the mine started a provision was created

Dr.MINE

DR. DECOMISSIONING PROVISION

then after the accident I have altered it to

DR. DECOMMISSIONING PROVISION

CR. ACCIDENT PROVISION 

dont you think there is there is a problem here because the asset value is left inflated? Yes but the mine is not working now and no need for that provision.

So under what section is a provision expense taxable.