https://www.taxtmi.com/caselaws?id=35930 The High Court of Punjab and Haryana ruled against the assessee, a registered firm, in a case involving the deduction of purchase tax under the mercantile system of accounting. The court held that the liability to pay purchase tax had arisen in a previous year, and deductions could only be claimed for liabilities accrued, not discharged in the current accounting year. The court referred to relevant provisions of the Income Tax Act and previous decisions to support its conclusion, ultimately deciding in favor of the revenue and against the assessee regarding the deduction claimed in the assessment year 1971-72. en-us Tue, 24 Mar 1981 00:00:00 +0530 Tue, 23 Jul 2013 12:01:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=35930 The High Court of Punjab and Haryana ruled against the assessee, a registered firm, in a case involving the deduction of purchase tax under the mercantile system of accounting. The court held that the liability to pay purchase tax had arisen in a previous year, and deductions could only be claimed for liabilities accrued, not discharged in the current accounting year. The court referred to relevant provisions of the Income Tax Act and previous decisions to support its conclusion, ultimately deciding in favor of the revenue and against the assessee regarding the deduction claimed in the assessment year 1971-72. Case-Laws Income Tax Tue, 24 Mar 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=35930