https://www.taxtmi.com/caselaws?id=789058 Premium paid to LIC for a monthly annuity linked to a retired partner-employee's service conditions was held to relate to an existing contractual liability, not a contingent liability. The Court found that the obligation to provide the assured annuity had accrued when the premium was paid, and that deferment of actual payment until retirement did not make the expenditure uncertain. In the absence of any refundable premium or alternate arrangement suggesting a shifting liability, the amount was treated as incurred toward an accrued liability under mercantile accounting and was allowable as a deduction. The assessee succeeded, the Tribunal's order was set aside, and the appellate authority's view was restored. en-us Wed, 18 Mar 2026 00:00:00 +0530 Thu, 02 Apr 2026 08:50:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=789058 Premium paid to LIC for a monthly annuity linked to a retired partner-employee's service conditions was held to relate to an existing contractual liability, not a contingent liability. The Court found that the obligation to provide the assured annuity had accrued when the premium was paid, and that deferment of actual payment until retirement did not make the expenditure uncertain. In the absence of any refundable premium or alternate arrangement suggesting a shifting liability, the amount was treated as incurred toward an accrued liability under mercantile accounting and was allowable as a deduction. The assessee succeeded, the Tribunal's order was set aside, and the appellate authority's view was restored. Case-Laws Income Tax Wed, 18 Mar 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=789058