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Income Tax - Highlights / Catch Notes

Home Highlights July 2012 Year 2012 This

Prior period expenditure - recognition on the basis of ...

Income Tax

July 13, 2012

Prior period expenditure - recognition on the basis of finalization of negotiations - deduction is not permissible in assessment year 2007-08, but, it is permissible in assessment year 2006-07 - AT

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  1. Prior period expenditure - when prior period income is taxed prior period expenditure cannot be disallowed - AT

  2. Addition on account of prior period expenditure - deducting prior period income From prior period expenditure is against well settled principles of law. - AT

  3. Prior period expenditure cannot be disallowed simply by observing that it is not ascertainable whether this expenditure was incurred for earning a particular receipts...

  4. Prior period expenses adjustment against the prior period income - once the prior period income is held to be taxable, the prior period expenditure also should be...

  5. Prior period expenditure - mercantile system of accounting - Revenue is required to adopt consistent approach and allow the expenditure which was crystallized during...

  6. Validity of SCN - the show cause notice issued prior to finalization of provisional assessment, when admittedly the assessees were under provisional assessment scheme,...

  7. Denial of refund claim - unjust enrichment clause shall not apply for finalization of the provisional assessment for the cases prior to 13.7.2006 - AT

  8. Denial of refund claim - Finalization of provisional assessment - prior to the amendment i.e. 13-7-2006, this doctrine of unjust enrichment was not attracted to refund...

  9. Entitlement to set off interest finance and professional and other charges from the interest income for the next assessment year - prior period expenditure - Deduction allowed - HC

  10. Prior period expenditure - Whether Tribunal is right in holding that the expenditure was crystalized during the relevant previous year when the assessee hijmself has...

 

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