https://www.taxtmi.com/caselaws?id=61255 Purchase tax liability was deductible only when it became clearly enforceable and crystallised against the assessee. Because the assessee maintained mercantile accounts but was actively disputing the levy, no workable obligation to provide for or pay arose until the statutory demand was quantified, served, and the challenge failed. The principle applied was that, where more than one reasonable view exists on the timing of allowance of a statutory liability, the interpretation favourable to the assessee should be adopted. On the facts, the assessee debited and paid the amount in the year of crystallisation, so the deduction was allowable in that year. en-us Thu, 13 Jan 1983 00:00:00 +0530 Tue, 11 Jan 2011 14:45:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=61255 Purchase tax liability was deductible only when it became clearly enforceable and crystallised against the assessee. Because the assessee maintained mercantile accounts but was actively disputing the levy, no workable obligation to provide for or pay arose until the statutory demand was quantified, served, and the challenge failed. The principle applied was that, where more than one reasonable view exists on the timing of allowance of a statutory liability, the interpretation favourable to the assessee should be adopted. On the facts, the assessee debited and paid the amount in the year of crystallisation, so the deduction was allowable in that year. Case-Laws Income Tax Thu, 13 Jan 1983 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=61255