https://www.taxtmi.com/caselaws?id=148700 Under the mercantile system, a statutory sales tax liability accrues when sales are effected, not only on assessment or demand, and a provision made on that basis can be deducted in computing business income. The text states that where the assessee does not dispute the liability and estimates the tax in its accounts, the amount represents an accrued trading liability directly connected with the business. Because discharge of that liability is commercially necessary for carrying on the business, the provision is treated as deductible under the relevant income-tax provision. en-us Thu, 19 Jun 1969 00:00:00 +0530 Tue, 08 Jul 2014 14:28:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=148700 Under the mercantile system, a statutory sales tax liability accrues when sales are effected, not only on assessment or demand, and a provision made on that basis can be deducted in computing business income. The text states that where the assessee does not dispute the liability and estimates the tax in its accounts, the amount represents an accrued trading liability directly connected with the business. Because discharge of that liability is commercially necessary for carrying on the business, the provision is treated as deductible under the relevant income-tax provision. Case-Laws Income Tax Thu, 19 Jun 1969 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=148700