https://www.taxtmi.com/caselaws?id=19625 The court upheld the Appellate Tribunal's decision to allow the deduction of arrears of rent under section 37 of the Income-tax Act for the assessment year 1974-75. It ruled in favor of the assessee, emphasizing that the liability to pay the additional amount only arose upon the court decree, indicating that it accrued in the relevant assessment year. The court clarified that the mercantile method of accounting was followed by the assessee, and the deduction was permissible as the liability was incurred in the relevant year. The judgment favored the assessee and answered the referred question in the affirmative, against the Revenue, with no costs awarded. en-us Thu, 20 Jan 1994 00:00:00 +0530 Sat, 07 Nov 2009 15:36:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=19625 The court upheld the Appellate Tribunal's decision to allow the deduction of arrears of rent under section 37 of the Income-tax Act for the assessment year 1974-75. It ruled in favor of the assessee, emphasizing that the liability to pay the additional amount only arose upon the court decree, indicating that it accrued in the relevant assessment year. The court clarified that the mercantile method of accounting was followed by the assessee, and the deduction was permissible as the liability was incurred in the relevant year. The judgment favored the assessee and answered the referred question in the affirmative, against the Revenue, with no costs awarded. Case-Laws Income Tax Thu, 20 Jan 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=19625