https://www.taxtmi.com/caselaws?id=800230 Accrual under section 145 arises only when a contractual reimbursement entitlement is ascertainable; later reconciliation of deposit liabilities is therefore recognised in the subsequent period. Under the mercantile system, prior-period expenses become deductible on identification, quantification and crystallisation, subject to the sustained residual disallowance. Genuine expenditure for business promotion, agency operations, reimbursed group expenses and depositor-grievance redressal is deductible, though reasonable restrictions may apply to celebratory or personal elements. NBFC-based limits do not restrict a partnership firm's substantiated agency commissions and incentives. Consumables and replacement UPS batteries are revenue expenditure, whereas communication equipment is capital. Unremitted public deposits held for transmission to a principal are not loans or advances and do not constitute deemed dividend. en-us Thu, 24 Sep 2026 00:00:00 +0530 Sat, 03 Oct 2026 09:32:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=800230 Accrual under section 145 arises only when a contractual reimbursement entitlement is ascertainable; later reconciliation of deposit liabilities is therefore recognised in the subsequent period. Under the mercantile system, prior-period expenses become deductible on identification, quantification and crystallisation, subject to the sustained residual disallowance. Genuine expenditure for business promotion, agency operations, reimbursed group expenses and depositor-grievance redressal is deductible, though reasonable restrictions may apply to celebratory or personal elements. NBFC-based limits do not restrict a partnership firm's substantiated agency commissions and incentives. Consumables and replacement UPS batteries are revenue expenditure, whereas communication equipment is capital. Unremitted public deposits held for transmission to a principal are not loans or advances and do not constitute deemed dividend. Case-Laws Income Tax Thu, 24 Sep 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=800230