https://www.taxtmi.com/caselaws?id=64486 Investment allowance under section 32A was not forfeited merely because no reserve existed in a loss year; where taxable income emerged, the Assessing Officer had to give an opportunity to create the required reserve before rejecting the claim. A provision for disputed excise duty was deductible on mercantile basis because an enforceable statutory liability had accrued, even though the demand was disputed and not finally paid. Proportionate curtailment of depreciation on account of a shortened previous year was not sustainable where the restriction conflicted with the statutory allowance, and full depreciation remained available in law. en-us Wed, 12 Aug 1992 00:00:00 +0530 Tue, 08 Feb 2011 11:25:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=64486 Investment allowance under section 32A was not forfeited merely because no reserve existed in a loss year; where taxable income emerged, the Assessing Officer had to give an opportunity to create the required reserve before rejecting the claim. A provision for disputed excise duty was deductible on mercantile basis because an enforceable statutory liability had accrued, even though the demand was disputed and not finally paid. Proportionate curtailment of depreciation on account of a shortened previous year was not sustainable where the restriction conflicted with the statutory allowance, and full depreciation remained available in law. Case-Laws Income Tax Wed, 12 Aug 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=64486