https://www.taxtmi.com/caselaws?id=15941 A statutory liability of a common carrier under the Carriers Act accrues when the loss or non-delivery event occurs, and under the mercantile system that accrual is not postponed by continued negotiations or later settlement for a lower amount. Applying Kedarnath Jute Manufacturing Co. Ltd., the Court treated the provision as deductible in the relevant previous year because legal liability, not merely book entries or final quantification, governs the timing of deduction. Any subsequent remission or reduction in settlement would fall for adjustment under section 41(1) of the Act. en-us Fri, 14 Aug 1998 00:00:00 +0530 Mon, 31 Aug 2009 11:06:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15941 A statutory liability of a common carrier under the Carriers Act accrues when the loss or non-delivery event occurs, and under the mercantile system that accrual is not postponed by continued negotiations or later settlement for a lower amount. Applying Kedarnath Jute Manufacturing Co. Ltd., the Court treated the provision as deductible in the relevant previous year because legal liability, not merely book entries or final quantification, governs the timing of deduction. Any subsequent remission or reduction in settlement would fall for adjustment under section 41(1) of the Act. Case-Laws Income Tax Fri, 14 Aug 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15941