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2011 (8) TMI 267 - DELHI HIGH COURTSick Industrial Companies - Contingent liability or accrued liabiltiy - Held that:- merely because proceedings could not be initiated by the PSEB against the assessee for enforcing the decree by way of execution for want of consent of the BIFR as required under Section 22 of SICA, it would not mean that the liability had not accrued when it is found that the assessee was following mercantile system of accounting - the principle fully applies. Parties have entered into agreement on transfer of technical know-how with the permission of the Government of India - Under it liability of the assessee to pay fee for technical know-how accrued - The fact that actual payment could be made only with the permission of RBI, only put him under obligation to apply to the RBI for grant of necessary permission for releasing payment of amount to a non-resident - But its enforceability is not a contingent one.
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