https://www.taxtmi.com/caselaws?id=64752 Under the mercantile system, accrued liabilities were deductible in the year of accrual even when later quantified, so fuel surcharge and part of the cess liability were allowed, while conjectural claims without proof of accrual, such as customs duty provision and forestry compensation, were rejected. A unilateral write-back did not by itself establish cessation of liability, so unclaimed balances were not treated as deemed income under section 41(1). The Tribunal also applied the prescribed valuation method for free perquisites under section 40A(5), allowed interest on borrowings linked to plant acquisition on the facts, remanded the diversion-of-funds issue for fresh examination, and held that terminal depreciation was unavailable after closure of the mining business, though capital loss could be claimed. en-us Wed, 08 Nov 1989 00:00:00 +0530 Wed, 09 Feb 2011 16:23:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=64752 Under the mercantile system, accrued liabilities were deductible in the year of accrual even when later quantified, so fuel surcharge and part of the cess liability were allowed, while conjectural claims without proof of accrual, such as customs duty provision and forestry compensation, were rejected. A unilateral write-back did not by itself establish cessation of liability, so unclaimed balances were not treated as deemed income under section 41(1). The Tribunal also applied the prescribed valuation method for free perquisites under section 40A(5), allowed interest on borrowings linked to plant acquisition on the facts, remanded the diversion-of-funds issue for fresh examination, and held that terminal depreciation was unavailable after closure of the mining business, though capital loss could be claimed. Case-Laws Income Tax Wed, 08 Nov 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=64752