https://www.taxtmi.com/caselaws?id=62219 A provision for purchase tax liability is deductible where the assessee has a real and reasonable apprehension of liability and the relevant sales tax proceedings have not finally negatived that liability. The rejection of the exemption claim in provisional proceedings, together with the fact that assessments for the relevant years remained unfinished, supported the existence of a continuing liability. A later exemption order did not undermine the position for the earlier accounting period in which the provision was created. The provision was therefore not to be denied merely because the liability had not yet crystallised by final assessment. en-us Tue, 29 Sep 1992 00:00:00 +0530 Tue, 18 Jan 2011 16:07:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=62219 A provision for purchase tax liability is deductible where the assessee has a real and reasonable apprehension of liability and the relevant sales tax proceedings have not finally negatived that liability. The rejection of the exemption claim in provisional proceedings, together with the fact that assessments for the relevant years remained unfinished, supported the existence of a continuing liability. A later exemption order did not undermine the position for the earlier accounting period in which the provision was created. The provision was therefore not to be denied merely because the liability had not yet crystallised by final assessment. Case-Laws Income Tax Tue, 29 Sep 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=62219