https://www.taxtmi.com/caselaws?id=20803 The appellate authority allowed the trading loss claim of a partnership firm acting as a liquor contractor, overturning the initial disallowance by the Tribunal. The liability arising from a shortfall in liquor purchases was considered a trading loss and thus allowable for deduction. The judgment emphasized the need for liabilities to be crystallized before claiming deductions, highlighting the importance of settlement or admission of liability. The case also discussed the application of the mercantile system of accounting for deduction claims and stressed the burden of proof on the assessee to substantiate liabilities for deduction purposes. The court directed a reevaluation with all relevant documents for a comprehensive decision. en-us Tue, 08 Dec 1992 00:00:00 +0530 Tue, 17 Nov 2009 12:53:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20803 The appellate authority allowed the trading loss claim of a partnership firm acting as a liquor contractor, overturning the initial disallowance by the Tribunal. The liability arising from a shortfall in liquor purchases was considered a trading loss and thus allowable for deduction. The judgment emphasized the need for liabilities to be crystallized before claiming deductions, highlighting the importance of settlement or admission of liability. The case also discussed the application of the mercantile system of accounting for deduction claims and stressed the burden of proof on the assessee to substantiate liabilities for deduction purposes. The court directed a reevaluation with all relevant documents for a comprehensive decision. Case-Laws Income Tax Tue, 08 Dec 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20803