https://www.taxtmi.com/caselaws?id=6713 Sales tax liability debited in the accounts was treated as deductible under the mercantile system because the liability arose when sales occurred and was not contingent merely because the taxing enactment was under challenge. The liability was considered accrued and ascertained where the assessee had recognised it as a present business obligation, even if the amount was estimated. Later validation of the levy was treated as confirming that the statutory liability existed during the relevant accounting year. On that basis, the sales tax amount was regarded as an admissible deduction and the question was answered in favour of the assessee. en-us Tue, 23 Aug 1966 00:00:00 +0530 Wed, 06 Aug 2014 17:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6713 Sales tax liability debited in the accounts was treated as deductible under the mercantile system because the liability arose when sales occurred and was not contingent merely because the taxing enactment was under challenge. The liability was considered accrued and ascertained where the assessee had recognised it as a present business obligation, even if the amount was estimated. Later validation of the levy was treated as confirming that the statutory liability existed during the relevant accounting year. On that basis, the sales tax amount was regarded as an admissible deduction and the question was answered in favour of the assessee. Case-Laws Income Tax Tue, 23 Aug 1966 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6713