https://www.taxtmi.com/caselaws?id=28320 Under the mercantile system, a fiscal liability is deductible in the year in which it accrues as a legally enforceable and ascertainable obligation, not merely when it is paid. Urban land tax, though imposed retrospectively, became an accrued liability only after the levy was upheld, so the deduction was allowed for the year of accrual. Municipal property tax under the Madras City Municipal Corporation Act accrues half-yearly and becomes payable within the statutory period; Rule 20(3) limits recovery where notice is not served but does not defer accrual. The deduction must therefore be confined to the amount attributable to the relevant half years of the account year. en-us Wed, 18 Nov 1981 00:00:00 +0530 Sat, 20 Feb 2010 13:27:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28320 Under the mercantile system, a fiscal liability is deductible in the year in which it accrues as a legally enforceable and ascertainable obligation, not merely when it is paid. Urban land tax, though imposed retrospectively, became an accrued liability only after the levy was upheld, so the deduction was allowed for the year of accrual. Municipal property tax under the Madras City Municipal Corporation Act accrues half-yearly and becomes payable within the statutory period; Rule 20(3) limits recovery where notice is not served but does not defer accrual. The deduction must therefore be confined to the amount attributable to the relevant half years of the account year. Case-Laws Income Tax Wed, 18 Nov 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28320