Dismissing the appeal of the revenue the Court held that ;the assessee’s liability to pay enhanced licence fee to the Railways was an accrued liability that arose in the year in which the payment was issued.
CIT v. Jagdish Prasad Gupta. (2018) 400 ITR 583 (Delhi) (HC)
S. 37(1):Business expenditure —Accrual- Enhancement of Licence fee payable to Railways in the year in which payment was issued .