https://www.taxtmi.com/caselaws?id=26331 Rule 29(2) of the M.P. Beedi and Cigar Workers (Conditions of Employment) Rules, 1968 was treated as creating a present statutory obligation to pay one-half wages when bidis were rejected as sub-standard or chhat on grounds other than wilful negligence. The liability arose on rejection itself and did not depend on a worker's demand or prior adjudication, so it was an accrued and ascertainable liability under mercantile accounting. Because an accrued liability remains deductible even if payment is deferred, and later dispute may only affect quantum, the assessee was entitled to deduct the wages liability in the assessment year 1970-71. The absence of actual payment or claims by workers did not make the liability contingent. en-us Wed, 22 Apr 1981 00:00:00 +0530 Thu, 04 Feb 2010 12:33:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26331 Rule 29(2) of the M.P. Beedi and Cigar Workers (Conditions of Employment) Rules, 1968 was treated as creating a present statutory obligation to pay one-half wages when bidis were rejected as sub-standard or chhat on grounds other than wilful negligence. The liability arose on rejection itself and did not depend on a worker's demand or prior adjudication, so it was an accrued and ascertainable liability under mercantile accounting. Because an accrued liability remains deductible even if payment is deferred, and later dispute may only affect quantum, the assessee was entitled to deduct the wages liability in the assessment year 1970-71. The absence of actual payment or claims by workers did not make the liability contingent. Case-Laws Income Tax Wed, 22 Apr 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26331