https://www.taxtmi.com/caselaws?id=205637 Business liabilities under the mercantile system are recognised in the year they arise, even if quantified or discharged later, where a reasonable estimate is available. Expenditure incurred to earn income should similarly be matched with the period of accrual to determine true profits. The discussion addresses whether liabilities payable to a sub-contractor were contractual obligations rather than loans or advances, the relevance of tax deduction at source under section 194C, and the need to examine deduction claims for the relevant assessment years on their actual accrual and accounting treatment. en-us Fri, 29 Apr 2011 00:00:00 +0530 Wed, 14 Jan 2026 16:52:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=205637 Business liabilities under the mercantile system are recognised in the year they arise, even if quantified or discharged later, where a reasonable estimate is available. Expenditure incurred to earn income should similarly be matched with the period of accrual to determine true profits. The discussion addresses whether liabilities payable to a sub-contractor were contractual obligations rather than loans or advances, the relevance of tax deduction at source under section 194C, and the need to examine deduction claims for the relevant assessment years on their actual accrual and accounting treatment. Case-Laws Income Tax Fri, 29 Apr 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=205637