https://www.taxtmi.com/caselaws?id=38663 Amounts collected from purchasers as sales tax in the course of business were trading receipts, because their true character, not the accounting label, determined taxability; the collections were therefore assessable to income-tax. Under the mercantile system, the corresponding sales tax liability accrued when the taxable sale occurred, so deduction was allowable for the relevant years even though the tax had not yet been quantified or paid. The absence of an assessment by the sales tax department did not make the liability contingent, and any excess claim could be adjusted later if the liability ceased or was reduced. en-us Tue, 11 Jun 1974 00:00:00 +0530 Thu, 08 Apr 2010 10:50:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38663 Amounts collected from purchasers as sales tax in the course of business were trading receipts, because their true character, not the accounting label, determined taxability; the collections were therefore assessable to income-tax. Under the mercantile system, the corresponding sales tax liability accrued when the taxable sale occurred, so deduction was allowable for the relevant years even though the tax had not yet been quantified or paid. The absence of an assessment by the sales tax department did not make the liability contingent, and any excess claim could be adjusted later if the liability ceased or was reduced. Case-Laws Income Tax Tue, 11 Jun 1974 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38663