https://www.taxtmi.com/caselaws?id=9447 The High Court allowed the deduction of Rs. 6,02,125 for the assessment year 1978-79 in a case where the Government converted a grant into a loan, leading to an irrecoverable debt for the assessee. The Court upheld the Tribunal's decision, emphasizing that under the mercantile system of accounting, deductions are claimed when liabilities accrue. The timing of liability accrual during the relevant assessment year was crucial, leading to the ruling in favor of the assessee. en-us Wed, 27 Apr 2005 00:00:00 +0530 Tue, 23 Jun 2009 09:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=9447 The High Court allowed the deduction of Rs. 6,02,125 for the assessment year 1978-79 in a case where the Government converted a grant into a loan, leading to an irrecoverable debt for the assessee. The Court upheld the Tribunal's decision, emphasizing that under the mercantile system of accounting, deductions are claimed when liabilities accrue. The timing of liability accrual during the relevant assessment year was crucial, leading to the ruling in favor of the assessee. Case-Laws Income Tax Wed, 27 Apr 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=9447