https://www.taxtmi.com/caselaws?id=66571 Under the mercantile system, expenditure and liabilities are deductible when they crystallise during the previous year, even if payment or exact quantification follows later. The Tribunal also stated that depreciation and investment allowance depend on actual user or commissioning of the asset and the true character of the transaction, while scientific research approval supports deduction where the assets are used for research. Consistently followed work-in-progress valuation cannot be displaced unless it is shown to fail in reflecting real profits. Claims based on prepaid taxes, accrued contractual liabilities, and factual user of machinery were generally allowed, while one sales tax question required verification of the underlying facts. en-us Tue, 26 Mar 1991 00:00:00 +0530 Mon, 28 Feb 2011 12:51:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=66571 Under the mercantile system, expenditure and liabilities are deductible when they crystallise during the previous year, even if payment or exact quantification follows later. The Tribunal also stated that depreciation and investment allowance depend on actual user or commissioning of the asset and the true character of the transaction, while scientific research approval supports deduction where the assets are used for research. Consistently followed work-in-progress valuation cannot be displaced unless it is shown to fail in reflecting real profits. Claims based on prepaid taxes, accrued contractual liabilities, and factual user of machinery were generally allowed, while one sales tax question required verification of the underlying facts. Case-Laws Income Tax Tue, 26 Mar 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=66571