https://www.taxtmi.com/caselaws?id=339092 A business liability that crystallises and becomes enforceable during the relevant year is deductible on accrual basis under the mercantile system, even if it relates to an earlier period. Applying that principle, the renewal license fee under the memorandum of understanding was treated as a quantified and final liability recorded in the books during the year. The disallowance was therefore not justified, and the license fee was allowable as business expenditure. en-us Wed, 21 Dec 2016 00:00:00 +0530 Sat, 18 Feb 2017 14:49:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=339092 A business liability that crystallises and becomes enforceable during the relevant year is deductible on accrual basis under the mercantile system, even if it relates to an earlier period. Applying that principle, the renewal license fee under the memorandum of understanding was treated as a quantified and final liability recorded in the books during the year. The disallowance was therefore not justified, and the license fee was allowable as business expenditure. Case-Laws Income Tax Wed, 21 Dec 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=339092