https://www.taxtmi.com/caselaws?id=49502 Payments of sales tax made under a statutory provisional assessment scheme and compulsorily payable under the Madras General Sales Tax Act were held to be incident to carrying on business and therefore constituted reasonable and necessary expenditure for tax computation under clause 12 of Schedule I of the Excess Profits Tax Act. The accounting treatment was consistent and provisional payments were subject to final adjustment; the proper test is commercial expediency and circumstances at the time of payment. The conclusion is that such lawfully assessed provisional tax payments are deductible. en-us Fri, 10 Mar 1961 00:00:00 +0530 Sat, 30 Aug 2014 20:34:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49502 Payments of sales tax made under a statutory provisional assessment scheme and compulsorily payable under the Madras General Sales Tax Act were held to be incident to carrying on business and therefore constituted reasonable and necessary expenditure for tax computation under clause 12 of Schedule I of the Excess Profits Tax Act. The accounting treatment was consistent and provisional payments were subject to final adjustment; the proper test is commercial expediency and circumstances at the time of payment. The conclusion is that such lawfully assessed provisional tax payments are deductible. Case-Laws Income Tax Fri, 10 Mar 1961 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49502