https://www.taxtmi.com/caselaws?id=16891 Under the mercantile system, a statutory leave-wage liability under the Beedi and Cigar Workers Act was deductible when it had already accrued under the statutory scheme, even though the exact amount was later quantified by reference to production and paid subsequently. The Court treated the obligation as a present business liability, not a contingent one, because the workers' entitlement arose from the law and notification in force. Subsequent quantification did not postpone accrual. The deduction was therefore allowable in computing business income and the issue was answered in favour of the assessee. en-us Mon, 09 Sep 1996 00:00:00 +0530 Sat, 12 Sep 2009 17:54:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=16891 Under the mercantile system, a statutory leave-wage liability under the Beedi and Cigar Workers Act was deductible when it had already accrued under the statutory scheme, even though the exact amount was later quantified by reference to production and paid subsequently. The Court treated the obligation as a present business liability, not a contingent one, because the workers' entitlement arose from the law and notification in force. Subsequent quantification did not postpone accrual. The deduction was therefore allowable in computing business income and the issue was answered in favour of the assessee. Case-Laws Income Tax Mon, 09 Sep 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=16891