https://www.taxtmi.com/caselaws?id=26832 A sales tax liability arising from earlier inter-State transactions was held deductible only when it crystallised into an enforceable and ascertainable obligation under retrospective tax legislation and the consequential assessment order. The Court applied the mercantile system principle by focusing on the year in which the liability became legally final, rather than the year of the underlying sales. Because the liability did not exist in enforceable form until the later determination, deduction was allowable in the previous year relevant to assessment year 1973-74. en-us Wed, 12 Feb 1986 00:00:00 +0530 Mon, 08 Feb 2010 17:05:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26832 A sales tax liability arising from earlier inter-State transactions was held deductible only when it crystallised into an enforceable and ascertainable obligation under retrospective tax legislation and the consequential assessment order. The Court applied the mercantile system principle by focusing on the year in which the liability became legally final, rather than the year of the underlying sales. Because the liability did not exist in enforceable form until the later determination, deduction was allowable in the previous year relevant to assessment year 1973-74. Case-Laws Income Tax Wed, 12 Feb 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26832