Madras Industrial Investment Corporation Ltd. Vs. CIT – Supreme Court

Advertisement Since the entire liability to pay the discount had been incurred in the accounting year in question, the assessee was entitled to deduct the entire amount of Rs 3,00,000 in that accounting year This conclusion does not appear to be justified looking to the nature of the liability It is true that the liability has been incurred in the accounting year But the liability is a continuing liability which stretches over a period of 12 years It is, therefore, a liability spread over a period of 12 years Ordinarily, revenue expenditure which is incurred wholly and exclusively for the p...