https://www.taxtmi.com/caselaws?id=16749 Surtax liability was not deductible in computing income because binding Supreme Court authority had already rejected that claim. Compensation and fees payable to a non-resident collaborator were also not deductible for the relevant assessment year, as the obligation to pay depended on prior approval and sanction by the Central Government and the Reserve Bank of India; without such approval in force during the year, no accrued liability arose. The legal principle stated is that where payment is contingent on statutory approval or sanction, the liability accrues only on the grant of that approval and cannot be deducted before that date. en-us Sat, 31 Jan 1998 00:00:00 +0530 Wed, 09 Sep 2009 17:37:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=16749 Surtax liability was not deductible in computing income because binding Supreme Court authority had already rejected that claim. Compensation and fees payable to a non-resident collaborator were also not deductible for the relevant assessment year, as the obligation to pay depended on prior approval and sanction by the Central Government and the Reserve Bank of India; without such approval in force during the year, no accrued liability arose. The legal principle stated is that where payment is contingent on statutory approval or sanction, the liability accrues only on the grant of that approval and cannot be deducted before that date. Case-Laws Income Tax Sat, 31 Jan 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=16749