https://www.taxtmi.com/caselaws?id=62410 Under the mercantile system, a statutory cess arising from business transactions during the accounting year was treated as an accrued and deductible liability. The fact that payment was disputed in writ proceedings did not make the obligation contingent, because the liability had already arisen under the levy. The amount collected under the marketing levy therefore remained payable to the Marketing Committee, and the authorities relied on supported deduction of an accrued business liability even where payment was contested. The cess was accordingly allowable as a deduction. en-us Fri, 10 Sep 1976 00:00:00 +0530 Wed, 19 Jan 2011 17:25:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=62410 Under the mercantile system, a statutory cess arising from business transactions during the accounting year was treated as an accrued and deductible liability. The fact that payment was disputed in writ proceedings did not make the obligation contingent, because the liability had already arisen under the levy. The amount collected under the marketing levy therefore remained payable to the Marketing Committee, and the authorities relied on supported deduction of an accrued business liability even where payment was contested. The cess was accordingly allowable as a deduction. Case-Laws Income Tax Fri, 10 Sep 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=62410