https://www.taxtmi.com/caselaws?id=17690 The court held that the claim for deduction of damages payable by the assessee to foreign companies was not allowable as the damages were unliquidated and not crystallized during the relevant accounting period. The court emphasized that liabilities must be accrued to be deductible and rejected the contention that a liability is incurred based on a breach of contract. The court ruled in favor of the Revenue, denying the deduction claim. However, the court allowed the weighted deduction claim for commission paid in India under section 35B of the Income-tax Act, 1961, based on services related to marketing goods outside India. en-us Tue, 04 Jun 1996 00:00:00 +0530 Thu, 24 Sep 2009 11:54:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=17690 The court held that the claim for deduction of damages payable by the assessee to foreign companies was not allowable as the damages were unliquidated and not crystallized during the relevant accounting period. The court emphasized that liabilities must be accrued to be deductible and rejected the contention that a liability is incurred based on a breach of contract. The court ruled in favor of the Revenue, denying the deduction claim. However, the court allowed the weighted deduction claim for commission paid in India under section 35B of the Income-tax Act, 1961, based on services related to marketing goods outside India. Case-Laws Income Tax Tue, 04 Jun 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=17690