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2014 (11) TMI 436 - ITAT DELHIDeletion of Prior paid expenses – Held that:- As decided in assessee’s own case for the earlier assessment year, it has been held that the appeal was decided wherein the re-opening was upheld and on merits the addition on account of demurrage charges and purchase of unconnected wagons the action of the CIT(A) was upheld - The challenge of the Revenue regarding the deletion of the addition on account of prior period expenses was disposed saying that the re-opening of assessment has not been upheld in respect of prior period expenses - these expenses have been booked based on crystallization of liability on receipt of material (claim/bill) by the Corporation during the year and cannot be related to the previous periods - Based on the crystallization of expense as per material/information/claim raised during the year, accounting entries have been passed - the assessee has been following the same method of accounting consistently keeping in view the nature of activities and the nature of transactions undertaken by it, the liability cannot be taken into consideration till it is crystallized - accordingly in the absence of any argument addressing factual inaccuracy the settled legal position or the issue is respectfully followed and the departmental ground is dismissed – Decided against revenue.
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