https://www.taxtmi.com/caselaws?id=6706 A deduction under the mercantile system is allowable only when the liability has definitely arisen and is ascertained and enforceable. Here, the additional sales tax debit could not be claimed because the amendment creating the liability had already been declared ultra vires, so no valid law imposed any enforceable obligation on the assessee. The amount was therefore neither accrued nor legally payable, and was not a proper deduction. Arguments based on retrospective amendment decisions were inapplicable because that issue had not been raised before the Tribunal. en-us Mon, 02 Aug 1965 00:00:00 +0530 Sun, 01 Feb 2009 11:52:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6706 A deduction under the mercantile system is allowable only when the liability has definitely arisen and is ascertained and enforceable. Here, the additional sales tax debit could not be claimed because the amendment creating the liability had already been declared ultra vires, so no valid law imposed any enforceable obligation on the assessee. The amount was therefore neither accrued nor legally payable, and was not a proper deduction. Arguments based on retrospective amendment decisions were inapplicable because that issue had not been raised before the Tribunal. Case-Laws Income Tax Mon, 02 Aug 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6706