https://www.taxtmi.com/caselaws?id=35710 The High Court clarified that the liability to pay a sum under a court decree was allowable as a deduction as a trading liability, separate from litigation expenses. The court found that the liability, arising from a dispute with selling agents after taking over assets and liabilities, was indeed a trading liability of the assessee. The timing of the liability was not a key issue, as the focus was on its classification. Ultimately, the court ruled in favor of the assessee, determining the liability as a trading liability without awarding costs. en-us Mon, 17 Sep 1979 00:00:00 +0530 Tue, 16 Mar 2010 12:22:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=35710 The High Court clarified that the liability to pay a sum under a court decree was allowable as a deduction as a trading liability, separate from litigation expenses. The court found that the liability, arising from a dispute with selling agents after taking over assets and liabilities, was indeed a trading liability of the assessee. The timing of the liability was not a key issue, as the focus was on its classification. Ultimately, the court ruled in favor of the assessee, determining the liability as a trading liability without awarding costs. Case-Laws Income Tax Mon, 17 Sep 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=35710