https://www.taxtmi.com/caselaws?id=25293 Payment of arrears of motor vehicle tax relating to earlier years was not deductible in computing the assessee's income, because the liability remained an antecedent burden of the original obligor and did not become an allowable expense merely when the business assets and liabilities were taken over. The alleged understanding with the State Government also did not create a fresh liability during the relevant accounting year; later discharge of an old tax obligation did not convert it into a deduction for that year. The claimed deduction was therefore disallowed and the reference answered in favour of the Revenue. en-us Fri, 07 Mar 1986 00:00:00 +0530 Wed, 27 Jan 2010 17:10:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25293 Payment of arrears of motor vehicle tax relating to earlier years was not deductible in computing the assessee's income, because the liability remained an antecedent burden of the original obligor and did not become an allowable expense merely when the business assets and liabilities were taken over. The alleged understanding with the State Government also did not create a fresh liability during the relevant accounting year; later discharge of an old tax obligation did not convert it into a deduction for that year. The claimed deduction was therefore disallowed and the reference answered in favour of the Revenue. Case-Laws Income Tax Fri, 07 Mar 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25293