https://www.taxtmi.com/caselaws?id=297086 Liquidated damages under an incomplete contract were treated as deductible on accrual where the liability arose from binding contractual terms, the assessee followed the mercantile system, and the issue had already been settled in the assessee's favour; the revenue challenge failed. An addition for alleged excess rental income was unsustainable because reconciliation showed the difference had already been offered as business income, and no contrary material was produced. Depreciation on cars at the higher commercial vehicle rate could not be restricted in a later year absent fresh material, particularly where the vehicles had earlier been accepted as commercial vehicles and the term was read with the Motor Vehicles Act, 1988. The assessee's claims were sustained on all three issues. en-us Wed, 20 Mar 2019 00:00:00 +0530 Wed, 18 Aug 2021 09:29:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=297086 Liquidated damages under an incomplete contract were treated as deductible on accrual where the liability arose from binding contractual terms, the assessee followed the mercantile system, and the issue had already been settled in the assessee's favour; the revenue challenge failed. An addition for alleged excess rental income was unsustainable because reconciliation showed the difference had already been offered as business income, and no contrary material was produced. Depreciation on cars at the higher commercial vehicle rate could not be restricted in a later year absent fresh material, particularly where the vehicles had earlier been accepted as commercial vehicles and the term was read with the Motor Vehicles Act, 1988. The assessee's claims were sustained on all three issues. Case-Laws Income Tax Wed, 20 Mar 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=297086