Dismissing the appeals of the revenue the Court held that , the assessee’s liability to pay the enhanced licence fee to the Railways for the assessment year in question was an accrued liability that arose in the year in which the payment was made.
CIT v. Jagdish Prasad Gupta. (2018) 405 ITR 29 (Delhi) (HC)
S. 37(1) : Business expenditure – Accrued or contingent Liability — Enhanced Licence fee payable to Railways is held to be allowable as deduction .[ S.36 , 145 ]