https://www.taxtmi.com/caselaws?id=798232 Under the cash system of accounting, genuine business expenditure is deductible on actual payment, even where the underlying Work Contract Tax relates to earlier financial years, unless the accounting method is validly rejected under the applicable statutory framework. Acceptance of the books and consistently followed cash method prevents selective application of mercantile principles merely because the liability arose earlier. Interest paid for delayed Work Contract Tax remains deductible where it compensates the State for delayed payment and is not imposed as a penalty for an offence or prohibited conduct. Assessed income requires recomputation after allowing both deductions. en-us Mon, 31 Aug 2026 00:00:00 +0530 Thu, 03 Sep 2026 08:20:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=798232 Under the cash system of accounting, genuine business expenditure is deductible on actual payment, even where the underlying Work Contract Tax relates to earlier financial years, unless the accounting method is validly rejected under the applicable statutory framework. Acceptance of the books and consistently followed cash method prevents selective application of mercantile principles merely because the liability arose earlier. Interest paid for delayed Work Contract Tax remains deductible where it compensates the State for delayed payment and is not imposed as a penalty for an offence or prohibited conduct. Assessed income requires recomputation after allowing both deductions. Case-Laws Income Tax Mon, 31 Aug 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=798232