https://www.taxtmi.com/caselaws?id=58096 Police deployment charges claimed on mercantile basis were held not deductible for the assessment year 1980-81 because the liability was still disputed, had not been accepted by the assessee, and had not been finally determined under the Karnataka Police Act, 1963. The first bill was raised only after the close of the previous year, while the second amount was merely a provision without any bill. On these facts, there was no concluded statutory liability accruing in the relevant year, so the principles of accrued liability under mercantile accounting did not justify the deduction. The disallowance was therefore upheld. en-us Mon, 16 May 1988 00:00:00 +0530 Fri, 17 Dec 2010 13:11:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=58096 Police deployment charges claimed on mercantile basis were held not deductible for the assessment year 1980-81 because the liability was still disputed, had not been accepted by the assessee, and had not been finally determined under the Karnataka Police Act, 1963. The first bill was raised only after the close of the previous year, while the second amount was merely a provision without any bill. On these facts, there was no concluded statutory liability accruing in the relevant year, so the principles of accrued liability under mercantile accounting did not justify the deduction. The disallowance was therefore upheld. Case-Laws Income Tax Mon, 16 May 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=58096