https://www.taxtmi.com/caselaws?id=67322 Under the mercantile system, a statutory sales-tax liability accrues when the taxable purchases and sales occur, so a provision made for that liability is deductible in the relevant year even if final quantification or adjustment happens later. A possible refund for export or inter-State sales does not postpone accrual of the primary liability or convert the provision into a contingent liability. The provision was therefore treated as an accrued fiscal liability, and the addition made on account of the sales-tax provision was not sustainable. en-us Mon, 17 Sep 1979 00:00:00 +0530 Thu, 10 Mar 2011 10:37:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=67322 Under the mercantile system, a statutory sales-tax liability accrues when the taxable purchases and sales occur, so a provision made for that liability is deductible in the relevant year even if final quantification or adjustment happens later. A possible refund for export or inter-State sales does not postpone accrual of the primary liability or convert the provision into a contingent liability. The provision was therefore treated as an accrued fiscal liability, and the addition made on account of the sales-tax provision was not sustainable. Case-Laws Income Tax Mon, 17 Sep 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=67322