https://www.taxtmi.com/caselaws?id=17386 The court held that a show-cause notice from the Central Excise Department did not create an accrued liability for the assessee, amounting to Rs. 46,86,431, as a deduction for excise duty under the Income-tax Act. The claimed deduction was rejected as the notice did not result in any actual liability, deemed as a contingent liability. The court emphasized the need for liabilities to be accrued and enforceable in the relevant year for income tax deductions, distinguishing between present and future contingent liabilities. Consequently, the deduction was disallowed, ruling in favor of the Revenue. en-us Fri, 21 Mar 1997 00:00:00 +0530 Tue, 22 Sep 2009 10:41:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=17386 The court held that a show-cause notice from the Central Excise Department did not create an accrued liability for the assessee, amounting to Rs. 46,86,431, as a deduction for excise duty under the Income-tax Act. The claimed deduction was rejected as the notice did not result in any actual liability, deemed as a contingent liability. The court emphasized the need for liabilities to be accrued and enforceable in the relevant year for income tax deductions, distinguishing between present and future contingent liabilities. Consequently, the deduction was disallowed, ruling in favor of the Revenue. Case-Laws Income Tax Fri, 21 Mar 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=17386