https://www.taxtmi.com/caselaws?id=35826 Under the mercantile system, purchase tax liability accrues in the year of the taxable transaction, not when it is later quantified or enforced. A subsequent exemption notification does not shift the point of accrual, and its later cancellation merely removes the concession without creating a fresh liability in the year of cancellation. The principle that a past-year statutory liability cannot be carried forward into a later accounting year was applied, so deduction of the earlier liability in the later year was not allowable. en-us Fri, 19 Jun 1981 00:00:00 +0530 Wed, 17 Mar 2010 10:36:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=35826 Under the mercantile system, purchase tax liability accrues in the year of the taxable transaction, not when it is later quantified or enforced. A subsequent exemption notification does not shift the point of accrual, and its later cancellation merely removes the concession without creating a fresh liability in the year of cancellation. The principle that a past-year statutory liability cannot be carried forward into a later accounting year was applied, so deduction of the earlier liability in the later year was not allowable. Case-Laws Income Tax Fri, 19 Jun 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=35826