https://www.taxtmi.com/caselaws?id=15203 A deduction for differential excise duty cannot be claimed merely on the basis of show-cause notices. Where no demand was raised in the accounting year and the notices were later quashed, no liability in praesenti existed; at most, the liability was contingent on future adjudication. For income-tax purposes, deduction is available only for an actual liability existing in the year of account, and the rule in Kedarnath Jute Manufacturing Co. Ltd. did not apply because no statutory demand had accrued. The claimed deduction was therefore not allowable as expenditure in the relevant assessment year. en-us Fri, 26 Nov 1999 00:00:00 +0530 Mon, 03 Aug 2009 16:40:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15203 A deduction for differential excise duty cannot be claimed merely on the basis of show-cause notices. Where no demand was raised in the accounting year and the notices were later quashed, no liability in praesenti existed; at most, the liability was contingent on future adjudication. For income-tax purposes, deduction is available only for an actual liability existing in the year of account, and the rule in Kedarnath Jute Manufacturing Co. Ltd. did not apply because no statutory demand had accrued. The claimed deduction was therefore not allowable as expenditure in the relevant assessment year. Case-Laws Income Tax Fri, 26 Nov 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15203