https://www.taxtmi.com/caselaws?id=66033 Under the mercantile system, an additional purchase price is deductible only when the liability has actually accrued and crystallised during the relevant year. Here, the milk price paid during the year was treated as final, and the later board and general body resolution created a fresh obligation rather than recognising a pre-existing one. Because the extra amount arose only when that later decision was taken, it did not constitute an accrued liability of the accounting year. The claimed deduction was therefore not allowable in that year, and the Revenue's position prevailed. en-us Sun, 25 Dec 1988 00:00:00 +0530 Mon, 21 Feb 2011 10:19:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=66033 Under the mercantile system, an additional purchase price is deductible only when the liability has actually accrued and crystallised during the relevant year. Here, the milk price paid during the year was treated as final, and the later board and general body resolution created a fresh obligation rather than recognising a pre-existing one. Because the extra amount arose only when that later decision was taken, it did not constitute an accrued liability of the accounting year. The claimed deduction was therefore not allowable in that year, and the Revenue's position prevailed. Case-Laws Income Tax Sun, 25 Dec 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=66033