https://www.taxtmi.com/caselaws?id=253717 The Gujarat High Court upheld the Income Tax Appellate Tribunal's decision to allow the liability claimed by the assessee for purchasing gas from ONGC as a revenue expenditure. The court emphasized that under the mercantile method of accounting, a liability is incurred when quantified and crystallized, regardless of disputes over pricing. The High Court found the liability to be contractual and properly incurred based on the Supreme Court's decision on gas price fixing, and dismissed the revenue's appeals as they failed to provide contradictory evidence. The judgment was based on the principle that contractual liabilities are considered crystallized when disputes are resolved or adjudicated under the mercantile system of accounting. en-us Tue, 18 Nov 2014 00:00:00 +0530 Tue, 02 Dec 2014 08:40:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=253717 The Gujarat High Court upheld the Income Tax Appellate Tribunal's decision to allow the liability claimed by the assessee for purchasing gas from ONGC as a revenue expenditure. The court emphasized that under the mercantile method of accounting, a liability is incurred when quantified and crystallized, regardless of disputes over pricing. The High Court found the liability to be contractual and properly incurred based on the Supreme Court's decision on gas price fixing, and dismissed the revenue's appeals as they failed to provide contradictory evidence. The judgment was based on the principle that contractual liabilities are considered crystallized when disputes are resolved or adjudicated under the mercantile system of accounting. Case-Laws Income Tax Tue, 18 Nov 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=253717