HC explains Accrual of liability under mercantile system of accounting

CIT Vs The KCP Limited (Andhra Pradesh High Court) In this case High Court explains Entire law on accrual of liability under mercantile system of accounting explained read with Accounting Standard 4 (AS-4) (contingencies and events occurring after the balance sheet date) issued by the ICAI and Section 211 of the Companies Act, 1956. FULL TEXT OF THE HIGH COURT ORDER / JUDGMENT The Income Tax Appellate Tribunal, Hyderabad bench, has referred the following questions for our opinion. 1. Whether, on the facts and in the circumstances of the case, the provision made for increase in wages on the bas...