https://www.taxtmi.com/caselaws?id=7378 Under mercantile accounting, managing agency remuneration was treated as an accrued liability when the assessee had already debited it in its books and the Central Government's later approval operated retrospectively from 1 April 1956. The retrospective approval meant the revised remuneration terms were legally effective from that date, so the tax consequence followed the year of accrual rather than the later year of approval. The Companies Act approval requirement did not make the payment so unlawful as to alter accrual for income-tax purposes. On the stated facts, the deduction was not allowable in assessment year 1959-60. en-us Mon, 19 Aug 1968 00:00:00 +0530 Thu, 19 Feb 2009 09:41:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7378 Under mercantile accounting, managing agency remuneration was treated as an accrued liability when the assessee had already debited it in its books and the Central Government's later approval operated retrospectively from 1 April 1956. The retrospective approval meant the revised remuneration terms were legally effective from that date, so the tax consequence followed the year of accrual rather than the later year of approval. The Companies Act approval requirement did not make the payment so unlawful as to alter accrual for income-tax purposes. On the stated facts, the deduction was not allowable in assessment year 1959-60. Case-Laws Income Tax Mon, 19 Aug 1968 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7378