https://www.taxtmi.com/caselaws?id=9256 Under the mercantile system of accounting, a liability must be recognised in the year in which it accrues, not in a later year when payment is made. Applying section 13 of the Indian Income-tax Act, 1922 and section 145(1) of the Income-tax Act, 1961, the Kerala HC stated that excise duty liability that arose in 1952 could not be deducted in assessment year 1963-64 merely because it was actually paid in 1962. The Court treated the principle in Kedarnath Jute Mfg. Co. Ltd. as conclusive and held that a past-year liability cannot be shifted to a subsequent assessment year by reason of delayed payment. en-us Thu, 12 Jul 1973 00:00:00 +0530 Sat, 20 Jun 2009 16:29:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=9256 Under the mercantile system of accounting, a liability must be recognised in the year in which it accrues, not in a later year when payment is made. Applying section 13 of the Indian Income-tax Act, 1922 and section 145(1) of the Income-tax Act, 1961, the Kerala HC stated that excise duty liability that arose in 1952 could not be deducted in assessment year 1963-64 merely because it was actually paid in 1962. The Court treated the principle in Kedarnath Jute Mfg. Co. Ltd. as conclusive and held that a past-year liability cannot be shifted to a subsequent assessment year by reason of delayed payment. Case-Laws Income Tax Thu, 12 Jul 1973 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=9256