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2018 (6) TMI 1502 - AT - Income TaxDisallowance on account of prior period expenses - Held that:- As the business of the assessee is going concern and the tax rates are rationalized and same in the respective AY under consideration, there is no loss to the revenue to allow the prior period expenditure. In large organisation, there are chances of pending approval or some issue with administration, the expenses may be claimed in the subsequent year. As per disclosure norms, assessee is to disclose the same as prior period expenses but there are regular business expenditure and as long as these expenditures are matched with the income, then, expenses are allowable expenditure. Assessee has offered both income as well as expenses. Therefore, AO is not correct in disallowing expenses selectively - we direct the AO delete the disallowance made on account of prior period expenditure. - decided in favour of assessee.
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