https://www.taxtmi.com/caselaws?id=61857 For an assessee following the mercantile system, the expression "paid" in the Explanation to Rule 9B(1) was interpreted to include expenditure actually incurred under the accounting method employed. Where the agreement for acquisition of film distribution rights created a crystallised liability for the entire contractual consideration on execution, deferred instalments did not prevent the full amount from being treated as the cost of acquisition. The full agreed consideration was therefore deductible, and disallowance of the balance was unsustainable. en-us Fri, 23 Sep 1994 00:00:00 +0530 Sat, 15 Jan 2011 16:48:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=61857 For an assessee following the mercantile system, the expression "paid" in the Explanation to Rule 9B(1) was interpreted to include expenditure actually incurred under the accounting method employed. Where the agreement for acquisition of film distribution rights created a crystallised liability for the entire contractual consideration on execution, deferred instalments did not prevent the full amount from being treated as the cost of acquisition. The full agreed consideration was therefore deductible, and disallowance of the balance was unsustainable. Case-Laws Income Tax Fri, 23 Sep 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=61857