https://www.taxtmi.com/caselaws?id=69138 The Tribunal allowed the claim for liability arising from raw materials taken on loan as a deduction in computing taxable profits for the assessment year 1981-82, following the mercantile method of accounting consistently. The provision made by the assessee was deemed permissible, representing a present obligation to be discharged in the future, contrary to the Income-tax Officer's disallowance. The Tribunal reversed the authorities' decisions, directing the allowance of the claim for the liability provision in accordance with the mercantile method of accounting and relevant case law. en-us Mon, 19 Oct 1987 00:00:00 +0530 Tue, 05 Apr 2011 13:43:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=69138 The Tribunal allowed the claim for liability arising from raw materials taken on loan as a deduction in computing taxable profits for the assessment year 1981-82, following the mercantile method of accounting consistently. The provision made by the assessee was deemed permissible, representing a present obligation to be discharged in the future, contrary to the Income-tax Officer's disallowance. The Tribunal reversed the authorities' decisions, directing the allowance of the claim for the liability provision in accordance with the mercantile method of accounting and relevant case law. Case-Laws Income Tax Mon, 19 Oct 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=69138