https://www.taxtmi.com/caselaws?id=26529 The High Court ruled against the assessee, holding that the payment made during the accounting period for earlier tax liability is not a permissible deduction under the Income-tax Act for the assessment year in question. The court emphasized the principles of the mercantile system of accounting, stating that liabilities should be recognized when they arise, not when paid. The court referred to legal precedents and rejected the argument that installment payments affected the accrual of tax liability. Ultimately, the court sided with the Revenue, denying the deduction claimed by the assessee for tax paid on earlier years' liability. en-us Wed, 26 Feb 1986 00:00:00 +0530 Fri, 05 Feb 2010 16:02:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26529 The High Court ruled against the assessee, holding that the payment made during the accounting period for earlier tax liability is not a permissible deduction under the Income-tax Act for the assessment year in question. The court emphasized the principles of the mercantile system of accounting, stating that liabilities should be recognized when they arise, not when paid. The court referred to legal precedents and rejected the argument that installment payments affected the accrual of tax liability. Ultimately, the court sided with the Revenue, denying the deduction claimed by the assessee for tax paid on earlier years' liability. Case-Laws Income Tax Wed, 26 Feb 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26529