https://www.taxtmi.com/caselaws?id=213514 A provision for hank yarn obligation was deductible in the relevant assessment year because the statutory liability had accrued and crystallised during that year. A circular extending the time for actual discharge only postponed performance; it did not make the liability contingent. On mercantile principles, an accrued liability that can be estimated with reasonable certainty remains allowable even if paid later. The Revenue's challenge therefore failed, and the deduction was allowed. en-us Mon, 23 Apr 2012 00:00:00 +0530 Tue, 22 May 2012 20:13:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=213514 A provision for hank yarn obligation was deductible in the relevant assessment year because the statutory liability had accrued and crystallised during that year. A circular extending the time for actual discharge only postponed performance; it did not make the liability contingent. On mercantile principles, an accrued liability that can be estimated with reasonable certainty remains allowable even if paid later. The Revenue's challenge therefore failed, and the deduction was allowed. Case-Laws Income Tax Mon, 23 Apr 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=213514