Expense allowable on accrual of liability for payment or expenditure

CIT Vs M/s. Oberon Edifices & Estates (P) Ltd (Kerala High Court) Hon’ble High Court of Kerala which held that an expenditure to be incurred in future in respect of a liability that accrued during the related accounting would be eligible for a deduction. in order to claim deduction of business expenditure, it is not necessary that the amount has been actually paid or expended during the relevant accounting year itself. It is sufficient that the liability for payment had incurred or accrued during the relevant accounting year. The actual payment of amount or discharge of liability may occ...