Expenditures for acquiring IPR must be treated as revenue expenses and matched against sales revenue, not as prior period costs.

Expenditures for acquiring IPR must be treated as revenue expenses and matched against sales revenue, not as prior period costs. https://www.taxtmi.com/highlights?id=38851 The concept of prior period expenses cannot be applied in the instant case, since the assessee has acquired the rights over the IPR over a period. Under revenue cost matching principle, all the expenditure incurred in acquiring IPR have to be treated as revenue expenditure irrespective of the year in which it was incurred and has to be allowed against sales revenue of IPR. - AT en-us Thu, 12 Apr 2018 11:45:39 +0530 Thu, 12 Apr 2018 11:45:39 +0530 TaxTMI RSS Generator Expenditures for acquiring IPR must be treated as revenue expenses and matched against sales revenue, not as prior period costs. https://www.taxtmi.com/highlights?id=38851 The concept of prior period expenses cannot be applied in the instant case, since the assessee has acquired the rights over the IPR over a period. Under revenue cost matching principle, all the expenditure incurred in acquiring IPR have to be treated as revenue expenditure irrespective of the year in which it was incurred and has to be allowed against sales revenue of IPR. - AT Highlights Income Tax Thu, 12 Apr 2018 11:45:39 +0530 https://www.taxtmi.com/highlights?id=38851