https://www.taxtmi.com/caselaws?id=354168 Interest on overdue deposits was held to be an ascertained liability deductible in the relevant year because, under the mercantile system, a liability is allowable once it has definitely arisen and can be estimated with reasonable certainty, even if quantified or discharged later. The bank had treated the obligation as crystallised under its accounting practice and the RBI circular, and had identified and quantified it in its return. The Court found no basis to treat it as contingent merely because renewal or later payment might occur, and held that the Tribunal's remand was unwarranted. The issue was answered in favour of the assessee and against the Revenue. en-us Wed, 17 Jan 2018 00:00:00 +0530 Fri, 16 Feb 2018 15:08:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=354168 Interest on overdue deposits was held to be an ascertained liability deductible in the relevant year because, under the mercantile system, a liability is allowable once it has definitely arisen and can be estimated with reasonable certainty, even if quantified or discharged later. The bank had treated the obligation as crystallised under its accounting practice and the RBI circular, and had identified and quantified it in its return. The Court found no basis to treat it as contingent merely because renewal or later payment might occur, and held that the Tribunal's remand was unwarranted. The issue was answered in favour of the assessee and against the Revenue. Case-Laws Income Tax Wed, 17 Jan 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=354168