https://www.taxtmi.com/caselaws?id=39626 The High Court ruled in favor of the revenue, denying the assessee's claim for deduction of sales tax amount in computing total income for the assessment year 1963-64. The Court emphasized that under the mercantile system of accounting, the liability must be linked to the year in which the transaction occurred, and the expenditure must be incurred for earning the income returned in the relevant assessment year. The Court rejected the claim based on payment made before April 1, 1961, and supported its decision by highlighting that the liability to pay sales tax arises when the taxable transactions occur. en-us Mon, 18 Nov 1974 00:00:00 +0530 Mon, 19 Apr 2010 12:01:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39626 The High Court ruled in favor of the revenue, denying the assessee's claim for deduction of sales tax amount in computing total income for the assessment year 1963-64. The Court emphasized that under the mercantile system of accounting, the liability must be linked to the year in which the transaction occurred, and the expenditure must be incurred for earning the income returned in the relevant assessment year. The Court rejected the claim based on payment made before April 1, 1961, and supported its decision by highlighting that the liability to pay sales tax arises when the taxable transactions occur. Case-Laws Income Tax Mon, 18 Nov 1974 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39626