https://www.taxtmi.com/caselaws?id=7822 A provision for sales tax debited to profit and loss account was treated as an ascertained liability where the charging provision had already created a present tax obligation. Under the mercantile system, deduction is available when liability has arisen and can be estimated with reasonable precision, even if assessment and final quantification occur later. Difficulty in exact computation does not make the liability contingent if the statutory levy and applicable rate make the obligation sufficiently ascertainable. The Rs. 15,000 provision was therefore allowable in computing business income. en-us Mon, 06 Oct 1969 00:00:00 +0530 Thu, 19 Mar 2009 16:14:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7822 A provision for sales tax debited to profit and loss account was treated as an ascertained liability where the charging provision had already created a present tax obligation. Under the mercantile system, deduction is available when liability has arisen and can be estimated with reasonable precision, even if assessment and final quantification occur later. Difficulty in exact computation does not make the liability contingent if the statutory levy and applicable rate make the obligation sufficiently ascertainable. The Rs. 15,000 provision was therefore allowable in computing business income. Case-Laws Income Tax Mon, 06 Oct 1969 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7822