https://www.taxtmi.com/caselaws?id=346676 Under the mercantile system, enhanced licence fee payable to the Railways was treated as an accrued liability once the obligation had arisen and could be reasonably estimated, even though it was disputed, unpaid and subject to later adjustment; the deduction was therefore allowable in the relevant years. Reopening under the Income-tax Act was held unsustainable where it was not based on fresh tangible material and relied only on the earlier controversy over the claim; the reassessment jurisdiction was therefore invalid for the specified years. On the remanded matters, the Tribunal did not fully address the earlier directions, but the deduction of licence fee for the later years was nevertheless upheld on merits. en-us Fri, 18 Aug 2017 00:00:00 +0530 Mon, 13 Nov 2017 18:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=346676 Under the mercantile system, enhanced licence fee payable to the Railways was treated as an accrued liability once the obligation had arisen and could be reasonably estimated, even though it was disputed, unpaid and subject to later adjustment; the deduction was therefore allowable in the relevant years. Reopening under the Income-tax Act was held unsustainable where it was not based on fresh tangible material and relied only on the earlier controversy over the claim; the reassessment jurisdiction was therefore invalid for the specified years. On the remanded matters, the Tribunal did not fully address the earlier directions, but the deduction of licence fee for the later years was nevertheless upheld on merits. Case-Laws Income Tax Fri, 18 Aug 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=346676