https://www.taxtmi.com/caselaws?id=190193 Under the mercantile system, a disputed commercial claim arising from speculative cotton transactions became deductible only when it was ascertained and enforceable through the arbitral award, not when the transactions were settled. Because the claim had been repudiated and remained contingent until the arbitrators quantified it, the loss could not be debited as an ascertained liability in the earlier year. The loss was therefore attributable to the later assessment year, 1946-47, and not to 1945-46. en-us Wed, 05 Oct 1960 00:00:00 +0530 Wed, 08 Feb 2017 18:02:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=190193 Under the mercantile system, a disputed commercial claim arising from speculative cotton transactions became deductible only when it was ascertained and enforceable through the arbitral award, not when the transactions were settled. Because the claim had been repudiated and remained contingent until the arbitrators quantified it, the loss could not be debited as an ascertained liability in the earlier year. The loss was therefore attributable to the later assessment year, 1946-47, and not to 1945-46. Case-Laws Income Tax Wed, 05 Oct 1960 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=190193