https://www.taxtmi.com/caselaws?id=10488 Under the mercantile system of accounting, a statutory liability is deductible when it accrues in law, not when it is later quantified or discharged. Sales tax liability arising from taxable sales and additional demand orders passed in the relevant previous years was treated as having accrued in those years, so it was deductible in the corresponding assessment years. By contrast, the Employees' State Insurance contribution was held to have become due at the end of the wage period, and later quantification or dispute did not defer accrual; it therefore could not be claimed in assessment year 1976-77 and was disallowed. en-us Wed, 22 Sep 2004 00:00:00 +0530 Thu, 16 Jul 2009 16:44:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=10488 Under the mercantile system of accounting, a statutory liability is deductible when it accrues in law, not when it is later quantified or discharged. Sales tax liability arising from taxable sales and additional demand orders passed in the relevant previous years was treated as having accrued in those years, so it was deductible in the corresponding assessment years. By contrast, the Employees' State Insurance contribution was held to have become due at the end of the wage period, and later quantification or dispute did not defer accrual; it therefore could not be claimed in assessment year 1976-77 and was disallowed. Case-Laws Income Tax Wed, 22 Sep 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=10488