https://www.taxtmi.com/caselaws?id=378241 The court held that the assessee's claimed deduction for enhanced license fee was permissible under the Income Tax Act, as the liability arose in the year of demand, regardless of actual payment. The court emphasized that the liability was not crystallized at the time of claim due to pending arbitration proceedings. Additionally, the court allowed the deduction for enhanced license fee and damages claimed by the assessee, stating that the liability was contractual and could be claimed in the year it accrued, even if not paid that year. The court rejected the Revenue's argument that Section 43B applied, as the assessee followed a mercantile accounting system and the fee was a commercial, not statutory, transaction. en-us Mon, 25 Mar 2019 00:00:00 +0530 Fri, 21 Jun 2019 12:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=378241 The court held that the assessee's claimed deduction for enhanced license fee was permissible under the Income Tax Act, as the liability arose in the year of demand, regardless of actual payment. The court emphasized that the liability was not crystallized at the time of claim due to pending arbitration proceedings. Additionally, the court allowed the deduction for enhanced license fee and damages claimed by the assessee, stating that the liability was contractual and could be claimed in the year it accrued, even if not paid that year. The court rejected the Revenue's argument that Section 43B applied, as the assessee followed a mercantile accounting system and the fee was a commercial, not statutory, transaction. Case-Laws Income Tax Mon, 25 Mar 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=378241