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| The Tax Publishers2021 TaxPub(DT) 5442 (Hyd-Trib) INCOME TAX ACT, 1961
Section 37(1)
Assessee claimed concerned expenses only in the year of crystalisation, i.e., assessment year 2013-14 than the earlier corresponding assessment year(s). It is an admitted fact that assessee had been assessed at the same rate all along and impugned prior period expenditure disallowance in such a case ought not to be made as it was a revenue neutral instance only. Therefore, AO was directed to delete impugned disallowance.
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Business expenditure - Prior period expenses - Assessee claimed deduction in the year of crystalization -
Assessee claimed deduction of prior period expenses. AO disallowed assessee's claim for the reason that same ought to have been claimed in the relevant previous year in which same was incurred. Held Assessee claimed concerned expenses only in the year of crystalisation, i.e., assessment year 2013-14 than the earlier corresponding assessment year(s). It is an admitted fact that assessee had been assessed at the same rate all along and impugned prior period expenditure disallowance in such a case ought not to be made as it was a revenue neutral instance only. Therefore, AO was directed to delete impugned disallowance.
Followed:Ocimum Bio Solutions India Ltd. ITA No. 2090/Hyd/2018 : 2021 TaxPub(DT) 3166 (Hyd-Trib).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2013-14
INCOME TAX ACT, 1961
Section 36(1)(va)
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