https://www.taxtmi.com/caselaws?id=57404 A payment made under a contractual arrangement to discharge a purchaser-related sales tax liability was deductible as business expenditure because the assessee's right to the retained sale consideration was inseparably linked to its obligation to meet that liability when it arose. The liability was contractual in character and the later payment discharged an enforceable obligation, so the deduction was allowable and the revenue's disallowance was unjustified. The earlier section 41(1) ruling was distinguishable because it dealt with taxability of a credit note as a trading receipt on receipt, not the deductibility of a subsequently incurred and actually discharged liability. en-us Thu, 19 Jul 1984 00:00:00 +0530 Thu, 09 Dec 2010 18:58:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=57404 A payment made under a contractual arrangement to discharge a purchaser-related sales tax liability was deductible as business expenditure because the assessee's right to the retained sale consideration was inseparably linked to its obligation to meet that liability when it arose. The liability was contractual in character and the later payment discharged an enforceable obligation, so the deduction was allowable and the revenue's disallowance was unjustified. The earlier section 41(1) ruling was distinguishable because it dealt with taxability of a credit note as a trading receipt on receipt, not the deductibility of a subsequently incurred and actually discharged liability. Case-Laws Income Tax Thu, 19 Jul 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=57404