https://www.taxtmi.com/caselaws?id=15618 The court held that the liability for the additional fuel surcharge accrued when the electricity was consumed, not when the bill was received. Therefore, the deduction for the surcharge should be allowed in the year of consumption (1981-82) and not in the year the bill was received (1984-85). The court emphasized that under the mercantile system of accounting, liabilities should be recognized when they accrue. As a result, the court ruled in favor of the assessee for both assessment years, disallowing the deduction for 1984-85 and allowing it for 1981-82. en-us Wed, 08 Sep 1999 00:00:00 +0530 Wed, 26 Aug 2009 13:35:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15618 The court held that the liability for the additional fuel surcharge accrued when the electricity was consumed, not when the bill was received. Therefore, the deduction for the surcharge should be allowed in the year of consumption (1981-82) and not in the year the bill was received (1984-85). The court emphasized that under the mercantile system of accounting, liabilities should be recognized when they accrue. As a result, the court ruled in favor of the assessee for both assessment years, disallowing the deduction for 1984-85 and allowing it for 1981-82. Case-Laws Income Tax Wed, 08 Sep 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15618