2018 (7) TMI 1408 - HC - Income Tax

Accrual of expenses - liability to pay enhanced license fee to the Railways - Whether the expenses claimed had in fact accrued or were contingent? - Held that - This issue is no longer res integra; they have been concluded by the common judgment of this Court in Jagdish Prasad Gupta v. CIT (2017 (8) TMI 734 - DELHI HIGH COURT). As is evident that judgment relates to past years in the case of the assessee/respondents involved in the present appeals. The conclusion in support can be noticed in paragraph 56.1/56.4 of the judgment where it was held that the assessee s liability to pay enhanced license fee to the Railways for the assessment in question was an accrued liability that arises in the year in which the payment was issued. Therefore, the question sought to be urged are covered by the judgment in Jagdish Prasad Gupta (supra) and connected cases.

Summary

The Delhi High Court dismissed the appeals regarding accrued expenses, citing a previous judgment in the case of Jagdish Prasad Gupta v. CIT. The court held that the liability to pay enhanced license fee to the Railways was an accrued liability in the year of payment. The appeals were dismissed accordingly.