https://www.taxtmi.com/caselaws?id=387177 Under the mercantile system, a settled job-work liability becomes deductible when it is finally crystallised, even if part of the underlying bill relates to an earlier year; the addition treating it as prior period expenditure was deleted. A flat 50% disallowance of labour and job-work payments to related concerns was also unsustainable because the expenditure was accepted as genuine and no reasoned finding showed that the payments were excessive or unreasonable having regard to market value, business needs, or benefit derived; that disallowance was deleted. The connected appeals succeeded and the additions were removed. en-us Mon, 16 Sep 2019 00:00:00 +0530 Fri, 18 Oct 2019 07:52:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=387177 Under the mercantile system, a settled job-work liability becomes deductible when it is finally crystallised, even if part of the underlying bill relates to an earlier year; the addition treating it as prior period expenditure was deleted. A flat 50% disallowance of labour and job-work payments to related concerns was also unsustainable because the expenditure was accepted as genuine and no reasoned finding showed that the payments were excessive or unreasonable having regard to market value, business needs, or benefit derived; that disallowance was deleted. The connected appeals succeeded and the additions were removed. Case-Laws Income Tax Mon, 16 Sep 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=387177