https://www.taxtmi.com/caselaws?id=8064 Under the mercantile system, a statutory liability is deductible when it has crystallised during the accounting year. A disputed excise duty demand did not become contingent merely because the assessee sought relief or because authorities later indicated a revised basis of levy; the original demand was neither withdrawn nor cancelled before year-end. The later reduced demand issued after the accounting year could not alter the character of the earlier accrued liability. The full excise duty liability therefore remained an ascertained and accrued expense for the relevant assessment year. en-us Thu, 05 Mar 1970 00:00:00 +0530 Fri, 27 Mar 2009 17:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8064 Under the mercantile system, a statutory liability is deductible when it has crystallised during the accounting year. A disputed excise duty demand did not become contingent merely because the assessee sought relief or because authorities later indicated a revised basis of levy; the original demand was neither withdrawn nor cancelled before year-end. The later reduced demand issued after the accounting year could not alter the character of the earlier accrued liability. The full excise duty liability therefore remained an ascertained and accrued expense for the relevant assessment year. Case-Laws Income Tax Thu, 05 Mar 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8064