https://www.taxtmi.com/caselaws?id=23122 Under the mercantile system, arrear rent and cess became deductible in the year the liability was finally settled and enforced by agreement, not merely because the claim related to earlier periods. The enhanced liability had remained disputed for years and became real, ascertained, and enforceable only when the agreement was executed during the previous year relevant to assessment year 1976-77. The deduction was therefore allowable in that year, even though the obligation was historically referable to earlier statutory periods. en-us Tue, 08 Aug 1989 00:00:00 +0530 Wed, 16 Dec 2009 18:24:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=23122 Under the mercantile system, arrear rent and cess became deductible in the year the liability was finally settled and enforced by agreement, not merely because the claim related to earlier periods. The enhanced liability had remained disputed for years and became real, ascertained, and enforceable only when the agreement was executed during the previous year relevant to assessment year 1976-77. The deduction was therefore allowable in that year, even though the obligation was historically referable to earlier statutory periods. Case-Laws Income Tax Tue, 08 Aug 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=23122