https://www.taxtmi.com/caselaws?id=326632 The High Court ruled in favor of the Respondent-Assessee, allowing the customs duty liability of Rs. 1.78 crores as an allowable expenditure for the Assessment Year 1985-86. The Court held that the liability was certain and quantified, making it deductible under the mercantile system of accounting. The Tribunal's decision to set aside the Commissioner of Income Tax's order was upheld, emphasizing that the customs duty liability was part of the purchase cost and not contingent. The High Court also rejected the argument that the Reference to the High Court was time-barred, affirming the validity of the Respondent's position based on the specific circumstances of the case. en-us Sat, 16 Apr 2016 00:00:00 +0530 Thu, 17 Nov 2016 12:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=326632 The High Court ruled in favor of the Respondent-Assessee, allowing the customs duty liability of Rs. 1.78 crores as an allowable expenditure for the Assessment Year 1985-86. The Court held that the liability was certain and quantified, making it deductible under the mercantile system of accounting. The Tribunal's decision to set aside the Commissioner of Income Tax's order was upheld, emphasizing that the customs duty liability was part of the purchase cost and not contingent. The High Court also rejected the argument that the Reference to the High Court was time-barred, affirming the validity of the Respondent's position based on the specific circumstances of the case. Case-Laws Income Tax Sat, 16 Apr 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=326632