https://www.taxtmi.com/caselaws?id=29569 Under the mercantile system, purchase tax collections received in the course of business are trading receipts, but the corresponding statutory purchase tax liability is deductible in the year of accrual, even if the liability is disputed or no book entry has been made. The relevant claim is not defeated by the absence of a contemporaneous debit entry, because deductibility depends on accrued liability rather than payment. The record also showed that the deduction issue had already been raised, so the Tribunal was wrong to treat it as a fresh claim and to confine its inquiry only to the character of the receipts. en-us Wed, 06 Jan 1982 00:00:00 +0530 Sat, 13 Mar 2010 17:33:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=29569 Under the mercantile system, purchase tax collections received in the course of business are trading receipts, but the corresponding statutory purchase tax liability is deductible in the year of accrual, even if the liability is disputed or no book entry has been made. The relevant claim is not defeated by the absence of a contemporaneous debit entry, because deductibility depends on accrued liability rather than payment. The record also showed that the deduction issue had already been raised, so the Tribunal was wrong to treat it as a fresh claim and to confine its inquiry only to the character of the receipts. Case-Laws Income Tax Wed, 06 Jan 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=29569