https://www.taxtmi.com/caselaws?id=12157 A statutory vehicle tax liability accrued during the accounting year was held deductible in computing income where the assessee followed the mercantile system and had made a corresponding provision in its accounts. The existence of a pending writ petition and an interim stay on collection did not extinguish or defer the accrued liability for that year. Applying the principle that an accrued statutory liability remains allowable notwithstanding a challenge to the demand, the deduction was held admissible in favour of the assessee and against the Revenue. en-us Tue, 20 Aug 2002 00:00:00 +0530 Thu, 18 Feb 2010 12:38:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=12157 A statutory vehicle tax liability accrued during the accounting year was held deductible in computing income where the assessee followed the mercantile system and had made a corresponding provision in its accounts. The existence of a pending writ petition and an interim stay on collection did not extinguish or defer the accrued liability for that year. Applying the principle that an accrued statutory liability remains allowable notwithstanding a challenge to the demand, the deduction was held admissible in favour of the assessee and against the Revenue. Case-Laws Income Tax Tue, 20 Aug 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=12157