https://www.taxtmi.com/caselaws?id=313427 The Court dismissed the Tax Case Appeal, ruling in favor of the Revenue. The Tribunal's decision was upheld, emphasizing that the Rs. 30 lakhs commission payment to the Managing Director was not deductible for the Assessment Year 2004-05. The Court determined that the liability arose only upon approval at the annual general meeting, and since the payment was recorded in a subsequent year, it could not be considered incurred in 2004-05. The decision underscored the significance of accurate accounting treatment and timing under the mercantile system, affirming the Revenue's methodology. en-us Mon, 12 Sep 2022 00:00:00 +0530 Thu, 06 Feb 2025 14:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=313427 The Court dismissed the Tax Case Appeal, ruling in favor of the Revenue. The Tribunal's decision was upheld, emphasizing that the Rs. 30 lakhs commission payment to the Managing Director was not deductible for the Assessment Year 2004-05. The Court determined that the liability arose only upon approval at the annual general meeting, and since the payment was recorded in a subsequent year, it could not be considered incurred in 2004-05. The decision underscored the significance of accurate accounting treatment and timing under the mercantile system, affirming the Revenue's methodology. Case-Laws Income Tax Mon, 12 Sep 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=313427