https://www.taxtmi.com/caselaws?id=28319 Under the mercantile system, an accrued statutory liability is deductible once it becomes real and ascertainable, even if payment is made later and no book entry was passed. The urban land tax liability was treated as having crystallised after the taxing statute was upheld, so it could be claimed in computing business income. The Hindu undivided family was also treated as continuing for income-tax purposes until final partition under Section 171, making the tax charge recoverable against the family as a whole rather than only against the remaining divided shares. On that basis, the full urban land tax was allowable as a business deduction for the relevant assessment year. en-us Wed, 18 Nov 1981 00:00:00 +0530 Sat, 20 Feb 2010 13:19:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28319 Under the mercantile system, an accrued statutory liability is deductible once it becomes real and ascertainable, even if payment is made later and no book entry was passed. The urban land tax liability was treated as having crystallised after the taxing statute was upheld, so it could be claimed in computing business income. The Hindu undivided family was also treated as continuing for income-tax purposes until final partition under Section 171, making the tax charge recoverable against the family as a whole rather than only against the remaining divided shares. On that basis, the full urban land tax was allowable as a business deduction for the relevant assessment year. Case-Laws Income Tax Wed, 18 Nov 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28319