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2015 (10) TMI 1595 - AT - Income TaxPrior period expenditure disallowed - assessee canvassed that though the impugned expenses were incurred during the period January 2002, to March 2002 but the liability therein had crystallized only on execution of the agreement in August 2002 and, therefore, such expense was an allowable deduction in the assessment year 2003-04 - Held that:- Decision of the CIT Vs. Exxon Mobil Lubricants P. Ltd. [2010 (9) TMI 36 - DELHI HIGH COURT ] does not support the case of the Revenue before us, and, rather it supports the proposition canvassed by the assessee to the effect that the liability is to be allowed as deduction in the year in which it has crystallized. Factually speaking, the liability in question has crystallized during the year under consideration, as noted by us in the earlier paras and, therefore, in our view, the lower authorities have erred in disallowing the impugned expense. As a consequence, we set aside the order of CIT(A) and direct the Assessing Officer to delete the addition - Decided in favour of assessee.
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