https://www.taxtmi.com/caselaws?id=17788 Purchase tax liability on raw cashewnuts was treated as an allowable business deduction because it arose from purchases made in the course of trading and represented an existing statutory obligation. A liability does not cease to be deductible merely because it is disputed, provided there is a bona fide and reasonable apprehension that it will become payable. The Kerala HC also noted that this approach is consistent with the statutory scheme reflected in section 43B of the Income-tax Act, 1961. On that basis, the Tribunal's allowance of the claim was sustained in favour of the assessee. en-us Mon, 25 Mar 1996 00:00:00 +0530 Thu, 24 Sep 2009 17:32:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=17788 Purchase tax liability on raw cashewnuts was treated as an allowable business deduction because it arose from purchases made in the course of trading and represented an existing statutory obligation. A liability does not cease to be deductible merely because it is disputed, provided there is a bona fide and reasonable apprehension that it will become payable. The Kerala HC also noted that this approach is consistent with the statutory scheme reflected in section 43B of the Income-tax Act, 1961. On that basis, the Tribunal's allowance of the claim was sustained in favour of the assessee. Case-Laws Income Tax Mon, 25 Mar 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=17788