https://www.taxtmi.com/caselaws?id=64711 The Tribunal dismissed the Revenue's appeal, affirming the allowance of the deduction for service charges paid to M/s Rashmi Trading Co. The decision was based on the accrual of liability during the relevant year and upheld the CIT(A)'s findings that services were rendered by M/s Rashmi Trading Co. and payments were made by the assessee. The Tribunal also noted that under the mercantile system of accounting, a liability is allowable in the year of accrual, even if it relates to a preceding year. en-us Mon, 29 Jan 1990 00:00:00 +0530 Wed, 09 Feb 2011 14:32:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=64711 The Tribunal dismissed the Revenue's appeal, affirming the allowance of the deduction for service charges paid to M/s Rashmi Trading Co. The decision was based on the accrual of liability during the relevant year and upheld the CIT(A)'s findings that services were rendered by M/s Rashmi Trading Co. and payments were made by the assessee. The Tribunal also noted that under the mercantile system of accounting, a liability is allowable in the year of accrual, even if it relates to a preceding year. Case-Laws Income Tax Mon, 29 Jan 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=64711