https://www.taxtmi.com/caselaws?id=39192 Under the Sugarcane Control Order, 1955, liability to pay additional sugarcane price under the price-linking formula accrued when sugarcane was purchased and the minimum price had been fixed. That liability was not contingent merely because the assessee followed the mercantile system, disputed the claim, or had not recorded corresponding book entries. The absence of accounting entries could not prevent accrual of a liability that had arisen in law, and later quantification did not postpone its deductibility. On that basis, the accrued additional cane price was allowable as a deduction in the relevant assessment years. en-us Tue, 30 Apr 1974 00:00:00 +0530 Tue, 13 Apr 2010 15:54:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39192 Under the Sugarcane Control Order, 1955, liability to pay additional sugarcane price under the price-linking formula accrued when sugarcane was purchased and the minimum price had been fixed. That liability was not contingent merely because the assessee followed the mercantile system, disputed the claim, or had not recorded corresponding book entries. The absence of accounting entries could not prevent accrual of a liability that had arisen in law, and later quantification did not postpone its deductibility. On that basis, the accrued additional cane price was allowable as a deduction in the relevant assessment years. Case-Laws Income Tax Tue, 30 Apr 1974 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39192