https://www.taxtmi.com/caselaws?id=3492 The court ruled in favor of the Assessee, allowing the deduction of Rs.50,761 for the disputed liability debited during the Assessment Year 1979-80. The court determined that the liability was ascertained and could be estimated with reasonable certainty when the recovery suit was filed. Citing legal precedents and principles, the court held that the Assessee could claim the deduction under the mercantile system of accounting, distinguishing between statutory and contractual liabilities. This decision overturned the Income Tax Appellate Tribunal's ruling and favored the Assessee over the Revenue. en-us Mon, 03 Sep 2007 00:00:00 +0530 Mon, 28 Jul 2008 12:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=3492 The court ruled in favor of the Assessee, allowing the deduction of Rs.50,761 for the disputed liability debited during the Assessment Year 1979-80. The court determined that the liability was ascertained and could be estimated with reasonable certainty when the recovery suit was filed. Citing legal precedents and principles, the court held that the Assessee could claim the deduction under the mercantile system of accounting, distinguishing between statutory and contractual liabilities. This decision overturned the Income Tax Appellate Tribunal's ruling and favored the Assessee over the Revenue. Case-Laws Income Tax Mon, 03 Sep 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=3492