https://www.taxtmi.com/caselaws?id=26131 The High Court upheld the Tribunal's decision to allow the deduction for interest on arrears of royalty, emphasizing that the liability accrues automatically upon default, regardless of the demand notice issuance. The Court rejected the Revenue's argument questioning the automatic accrual of interest, citing previous assessments and the recognition of accrued liabilities for tax purposes. This case underscores the importance of consistent tax treatment based on actual liabilities reflected in financial accounts. en-us Mon, 03 Feb 1986 00:00:00 +0530 Wed, 03 Feb 2010 10:29:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26131 The High Court upheld the Tribunal's decision to allow the deduction for interest on arrears of royalty, emphasizing that the liability accrues automatically upon default, regardless of the demand notice issuance. The Court rejected the Revenue's argument questioning the automatic accrual of interest, citing previous assessments and the recognition of accrued liabilities for tax purposes. This case underscores the importance of consistent tax treatment based on actual liabilities reflected in financial accounts. Case-Laws Income Tax Mon, 03 Feb 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26131