Method of accounting and accrual –basis accounting Principles. Entry made in accounts, as per accounting system employed by a person regularly maintained by him is considered to be valid allowable, if it is not contrary to other provisions of law. In mercantile system of accounting any ascertain liability accruing to any person, with reasonable apprehension that it would become payable, is an allowable deduction.
| Court | Year | Appellant vs Respondent | Sections | Topic |
|---|---|---|---|---|
| Sindh High Court | 2022 | COMMISSIONER INLAND REVENUE ZONE-I Vs MESSRS EXCELL PAKISTAN (PVT.) LTD |
Income Tax Ordinance, 2001 Ss. 20, 32, 34, 122, 133 |
Method of accounting and accrual –basis accounting Principles |