https://www.taxtmi.com/caselaws?id=23908 Under the mercantile system, sales tax liability is deductible in the year it accrues, not in the year it is later paid or quantified. Because the liability had accrued in earlier assessment years, it could not be shifted to assessment year 1977-78 merely on payment in that year. An allowance in the wrong year was treated as prejudicial to the Revenue, so revision under section 263 of the Income-tax Act, 1961 was justified and the assessment order was set aside. en-us Wed, 10 May 1989 00:00:00 +0530 Fri, 15 Jan 2010 11:51:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=23908 Under the mercantile system, sales tax liability is deductible in the year it accrues, not in the year it is later paid or quantified. Because the liability had accrued in earlier assessment years, it could not be shifted to assessment year 1977-78 merely on payment in that year. An allowance in the wrong year was treated as prejudicial to the Revenue, so revision under section 263 of the Income-tax Act, 1961 was justified and the assessment order was set aside. Case-Laws Income Tax Wed, 10 May 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=23908