https://www.taxtmi.com/caselaws?id=25608 An employer's special contribution to the Employees' State Insurance Corporation was treated as deductible in the assessment year 1975-76 because the statutory liability, though arising from an earlier amendment, became real and enforceable only when the demand was revived after the validity of the amendment had been upheld. Applying the mercantile system, the liability was regarded as crystallised in the year when the legal controversy ended and the demand was finally made. The court also treated its earlier decision in Orient Supply Syndicate as binding. The deduction was therefore allowable in that year, and the question was answered in the assessee's favour. en-us Thu, 12 Mar 1987 00:00:00 +0530 Fri, 29 Jan 2010 16:57:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25608 An employer's special contribution to the Employees' State Insurance Corporation was treated as deductible in the assessment year 1975-76 because the statutory liability, though arising from an earlier amendment, became real and enforceable only when the demand was revived after the validity of the amendment had been upheld. Applying the mercantile system, the liability was regarded as crystallised in the year when the legal controversy ended and the demand was finally made. The court also treated its earlier decision in Orient Supply Syndicate as binding. The deduction was therefore allowable in that year, and the question was answered in the assessee's favour. Case-Laws Income Tax Thu, 12 Mar 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25608