https://www.taxtmi.com/caselaws?id=471223 Under the mercantile system, a provision for audit fees is deductible only when audit services have been rendered and the corresponding liability has accrued and crystallised during the relevant year. A statutory obligation to obtain an audit does not itself create an enforceable liability before the audit is undertaken; an uncrystallised provision remains contingent. Audit fees relating to an earlier period may be claimed in the payment year as prior-period expenditure after recasting the accounts. Delayed employees' EPF contributions require verification of the actual delayed amount, and any disallowance must be restricted to the amount so verified. en-us Thu, 03 Apr 2025 00:00:00 +0530 Tue, 25 Aug 2026 18:57:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=471223 Under the mercantile system, a provision for audit fees is deductible only when audit services have been rendered and the corresponding liability has accrued and crystallised during the relevant year. A statutory obligation to obtain an audit does not itself create an enforceable liability before the audit is undertaken; an uncrystallised provision remains contingent. Audit fees relating to an earlier period may be claimed in the payment year as prior-period expenditure after recasting the accounts. Delayed employees' EPF contributions require verification of the actual delayed amount, and any disallowance must be restricted to the amount so verified. Case-Laws Income Tax Thu, 03 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=471223