Accounting treatment of additional sugarcane payments: mercantile system permits deduction when liability arises in accounts. Where an assessee follows the mercantile system of accounting, additional amounts payable under an award or statutory price-fixation order are deductible in the year the liability arises in the accounts, not in the year to which the award relates; this modification to prior instruction does not apply to those following the cash system of accounting.
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Provisions expressly mentioned in the judgment/order text.
Accounting treatment of additional sugarcane payments: mercantile system permits deduction when liability arises in accounts.
Where an assessee follows the mercantile system of accounting, additional amounts payable under an award or statutory price-fixation order are deductible in the year the liability arises in the accounts, not in the year to which the award relates; this modification to prior instruction does not apply to those following the cash system of accounting.
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