https://www.taxtmi.com/caselaws?id=122629 Accrued debenture interest may qualify as an ascertained liability under the mercantile system where it is quantified under the debenture terms and accrues year to year, and mere non-entry in the books does not by itself defeat deduction. However, where the interest falls within the scope of section 40(a)(ia) of the Income-tax Act, 1961, deductibility depends on compliance with the tax-deduction-at-source requirement. The special disallowance provision overrides the general accrual principle, and the interest expenditure is disallowed for the year if tax was not deducted and paid within the prescribed time. en-us Fri, 04 Dec 2009 00:00:00 +0530 Fri, 07 Jun 2013 13:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=122629 Accrued debenture interest may qualify as an ascertained liability under the mercantile system where it is quantified under the debenture terms and accrues year to year, and mere non-entry in the books does not by itself defeat deduction. However, where the interest falls within the scope of section 40(a)(ia) of the Income-tax Act, 1961, deductibility depends on compliance with the tax-deduction-at-source requirement. The special disallowance provision overrides the general accrual principle, and the interest expenditure is disallowed for the year if tax was not deducted and paid within the prescribed time. Case-Laws Income Tax Fri, 04 Dec 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=122629