https://www.taxtmi.com/caselaws?id=49502 Sales tax paid under provisional assessment was treated as a lawful business expenditure because it discharged an existing statutory liability and reflected the assessee's established accounting practice. The test under rule 12 of Schedule I of the Excess Profits Tax Act is commercial expediency and the circumstances prevailing when payment is made, not later adjustments or the fact that the amount was ultimately found excessive. Payments made to avoid default consequences were therefore not unreasonable or unnecessary, and the deduction was allowed against the revenue. 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 Sales tax paid under provisional assessment was treated as a lawful business expenditure because it discharged an existing statutory liability and reflected the assessee's established accounting practice. The test under rule 12 of Schedule I of the Excess Profits Tax Act is commercial expediency and the circumstances prevailing when payment is made, not later adjustments or the fact that the amount was ultimately found excessive. Payments made to avoid default consequences were therefore not unreasonable or unnecessary, and the deduction was allowed against the revenue. Case-Laws Income Tax Fri, 10 Mar 1961 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49502