https://www.taxtmi.com/caselaws?id=15803 The High Court ruled in favor of the tax authorities, disallowing the deduction of contributions to a reserve fund for specific accounting years in arriving at taxable profits. The court emphasized that statutory liabilities should be recognized in the year they arise, even if disputed earlier, for claiming deductions. The judgment upheld the decision to disallow the deduction for the earlier years, in line with the principles of the mercantile system of accounting and statutory obligations under the Electricity (Supply) Act, 1948. en-us Mon, 27 Apr 1998 00:00:00 +0530 Sat, 29 Aug 2009 12:11:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15803 The High Court ruled in favor of the tax authorities, disallowing the deduction of contributions to a reserve fund for specific accounting years in arriving at taxable profits. The court emphasized that statutory liabilities should be recognized in the year they arise, even if disputed earlier, for claiming deductions. The judgment upheld the decision to disallow the deduction for the earlier years, in line with the principles of the mercantile system of accounting and statutory obligations under the Electricity (Supply) Act, 1948. Case-Laws Income Tax Mon, 27 Apr 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15803