https://www.taxtmi.com/caselaws?id=23888 The High Court ruled in favor of the Revenue, denying the deduction of purchase tax paid for the assessment years 1975-76 and 1976-77 in the assessment year 1977-78 under the mercantile system of accounting. The court emphasized that deductions should be claimed based on the accrual of liability, even if the liability is quantified later. The court held that the tax liability had accrued in the relevant periods of the earlier assessment years, and the dismissal of the writ petition and quantification of tax by sales tax authorities did not justify claiming the deduction in a subsequent assessment year. en-us Wed, 26 Apr 1989 00:00:00 +0530 Fri, 15 Jan 2010 10:58:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=23888 The High Court ruled in favor of the Revenue, denying the deduction of purchase tax paid for the assessment years 1975-76 and 1976-77 in the assessment year 1977-78 under the mercantile system of accounting. The court emphasized that deductions should be claimed based on the accrual of liability, even if the liability is quantified later. The court held that the tax liability had accrued in the relevant periods of the earlier assessment years, and the dismissal of the writ petition and quantification of tax by sales tax authorities did not justify claiming the deduction in a subsequent assessment year. Case-Laws Income Tax Wed, 26 Apr 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=23888