https://www.taxtmi.com/caselaws?id=9611 Amounts collected by a hotel as hotel receipts tax were treated as trading receipts because they arose in the course of the business, and their transfer to a separate liability account did not change that character. Under the mercantile system, the corresponding statutory liability was deductible when it accrued, and the interim order preserving the tax obligation did not prevent deduction once the liability had crystallised. The analysis also noted that section 21 of the Hotel Receipts Tax Act contemplated deduction of the amount paid to discharge the liability for the relevant assessment year. The reference was answered by recognising both the business-receipt character of the collections and the allowance of deduction in the appropriate year. en-us Tue, 25 Oct 2005 00:00:00 +0530 Sun, 28 Jun 2009 09:20:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=9611 Amounts collected by a hotel as hotel receipts tax were treated as trading receipts because they arose in the course of the business, and their transfer to a separate liability account did not change that character. Under the mercantile system, the corresponding statutory liability was deductible when it accrued, and the interim order preserving the tax obligation did not prevent deduction once the liability had crystallised. The analysis also noted that section 21 of the Hotel Receipts Tax Act contemplated deduction of the amount paid to discharge the liability for the relevant assessment year. The reference was answered by recognising both the business-receipt character of the collections and the allowance of deduction in the appropriate year. Case-Laws Income Tax Tue, 25 Oct 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=9611