https://www.taxtmi.com/caselaws?id=790399 Under the mercantile system, prior period expenditure may still be deductible if the related liability crystallises in the relevant year; the Tribunal therefore restored the matter for verification of the earlier billing and year of crystallisation. Interest disallowance on loans advanced to related parties could not be sustained without examining the assessee's claim that the advances came from own funds, so the issue was remanded for fresh factual verification of fund flow and nexus. The section 68 addition also required fresh scrutiny of evidence filed before the first appellate authority, with the Assessing Officer directed to examine creditworthiness after giving the assessee an opportunity to substantiate the claim. en-us Wed, 08 Apr 2026 00:00:00 +0530 Fri, 24 Apr 2026 08:52:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=790399 Under the mercantile system, prior period expenditure may still be deductible if the related liability crystallises in the relevant year; the Tribunal therefore restored the matter for verification of the earlier billing and year of crystallisation. Interest disallowance on loans advanced to related parties could not be sustained without examining the assessee's claim that the advances came from own funds, so the issue was remanded for fresh factual verification of fund flow and nexus. The section 68 addition also required fresh scrutiny of evidence filed before the first appellate authority, with the Assessing Officer directed to examine creditworthiness after giving the assessee an opportunity to substantiate the claim. Case-Laws Income Tax Wed, 08 Apr 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=790399