https://www.taxtmi.com/caselaws?id=8474 On reversal of a trial court decree, the obligation to make restitution arose automatically under section 144 of the Code of Civil Procedure, including the normal incident of interest. Under mercantile accounting, that legal liability accrued on the date of reversal and was deductible in the relevant previous years even though not yet discharged. The deduction could not be refused merely because no corresponding entry was made in the books, since an accounting omission does not extinguish a liability created by operation of law. The interest amount was therefore not assessable in the assessee's hands. en-us Thu, 20 May 1971 00:00:00 +0530 Sun, 26 Apr 2009 22:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8474 On reversal of a trial court decree, the obligation to make restitution arose automatically under section 144 of the Code of Civil Procedure, including the normal incident of interest. Under mercantile accounting, that legal liability accrued on the date of reversal and was deductible in the relevant previous years even though not yet discharged. The deduction could not be refused merely because no corresponding entry was made in the books, since an accounting omission does not extinguish a liability created by operation of law. The interest amount was therefore not assessable in the assessee's hands. Case-Laws Income Tax Thu, 20 May 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8474