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2019 (3) TMI 228 - BOMBAY HIGH COURTClaim of expenditure pertaining to earlier year - accrual of expenses - mercantile system of accountancy - prior period expenses - crystallized during the previous year - HELD THAT:- Assessee follows the mercantile system of accountancy, the expenditure has to be accounted for on accrual basis. For accrual of expenses to take place, it must become due. In the present case, there was no accrual of the expenditure in the earlier year had not become due. It became due only in this year i.e. it crystallized during the previous year relevant to the subject assessment year. Thus the view taken by the Tribunal cannot be found fault with. No substantial question of law.
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