https://www.taxtmi.com/caselaws?id=15798 The court ruled in favor of the assessee in a tax reference case concerning the allowability of a provision made towards purchase tax as expenditure for the assessment year 1982-83. The court emphasized the importance of assessing whether the provision was made in anticipation of a genuine liability, holding that if there was a reasonable apprehension of the liability, the provision could be considered a deductible business expenditure. Additionally, the court found that the assessee was following the mercantile system of accounting, allowing for the deduction of the purchase tax provision. en-us Wed, 15 Sep 1999 00:00:00 +0530 Sat, 29 Aug 2009 11:38:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15798 The court ruled in favor of the assessee in a tax reference case concerning the allowability of a provision made towards purchase tax as expenditure for the assessment year 1982-83. The court emphasized the importance of assessing whether the provision was made in anticipation of a genuine liability, holding that if there was a reasonable apprehension of the liability, the provision could be considered a deductible business expenditure. Additionally, the court found that the assessee was following the mercantile system of accounting, allowing for the deduction of the purchase tax provision. Case-Laws Income Tax Wed, 15 Sep 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15798