2018 (2) TMI 185 - HC - Income Tax

Accrued or a contingent liability - liability of the Assessee to pay enhanced licence fee - Revisions of licence fees - Tax treatment of claim of licence fee as deduction - whether licence fee payable to the Railways to be an accrued liability? - Held that - The question of law in this appeal are 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 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.

Summary

The Delhi High Court dismissed the appeal, stating that the issues regarding expenses claimed had already been addressed in a previous judgment (ITA 711/2011) where it was held that the liability to pay enhanced license fee was an accrued liability that arises in the year of payment. The appeal was dismissed accordingly.