https://www.taxtmi.com/caselaws?id=3493 The High Court ruled in favor of the Assessee, allowing the deduction of interest payment claimed as a contractual liability under the Income Tax Act for Assessment Year 1981-82. The Court held that the liability to pay interest crystallized when demanded in 1980, following the principles of accrued liability under the mercantile system of accounting. Despite the actual payment date being in 2007, the Court emphasized that the interest liability accrued in 1980 should be deductible, concluding the reference under Section 256(1) of the Income Tax Act, 1961. en-us Thu, 04 Oct 2007 00:00:00 +0530 Mon, 28 Jul 2008 12:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=3493 The High Court ruled in favor of the Assessee, allowing the deduction of interest payment claimed as a contractual liability under the Income Tax Act for Assessment Year 1981-82. The Court held that the liability to pay interest crystallized when demanded in 1980, following the principles of accrued liability under the mercantile system of accounting. Despite the actual payment date being in 2007, the Court emphasized that the interest liability accrued in 1980 should be deductible, concluding the reference under Section 256(1) of the Income Tax Act, 1961. Case-Laws Income Tax Thu, 04 Oct 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=3493