https://www.taxtmi.com/caselaws?id=297850 Under the mercantile system, prior period expenses are deductible in the year in which the liability crystallises, even if the underlying transaction relates to an earlier period. Statutory contributions made to a regulatory fund, such as ERPC charges, are treated as mandatory payments rather than contractual outgoings and therefore do not attract tax deduction at source. Interest earned on SLDC-UI Fund balances belongs to the regulatory fund and not to the assessee where the assessee lacks beneficial ownership; use of the assessee's PAN or reflection in Form 26AS does not alter taxability. The Revenue's challenge to the disputed additions accordingly failed. en-us Mon, 12 Nov 2018 00:00:00 +0530 Fri, 24 Sep 2021 11:06:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=297850 Under the mercantile system, prior period expenses are deductible in the year in which the liability crystallises, even if the underlying transaction relates to an earlier period. Statutory contributions made to a regulatory fund, such as ERPC charges, are treated as mandatory payments rather than contractual outgoings and therefore do not attract tax deduction at source. Interest earned on SLDC-UI Fund balances belongs to the regulatory fund and not to the assessee where the assessee lacks beneficial ownership; use of the assessee's PAN or reflection in Form 26AS does not alter taxability. The Revenue's challenge to the disputed additions accordingly failed. Case-Laws Income Tax Mon, 12 Nov 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=297850