https://www.taxtmi.com/caselaws?id=404241 Prior period expenses were treated as allowable where the related liabilities crystallised during the year and the assessee consistently followed the statutory electricity-board accounting framework. The Tribunal noted that prior period income and expenses were separately reflected under that method, and the accounts had been accepted by internal auditors, statutory auditors and the CAG without adverse comment. It also found that the Assessing Officer's adjustment caused double addition for items already disallowed by the assessee in its return. On that basis, and applying the principle that expenditure is deductible when liability crystallises with consistent accounting treatment, the disallowance was held unsustainable except for items voluntarily disallowed. en-us Wed, 17 Feb 2021 00:00:00 +0530 Fri, 19 Feb 2021 10:36:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=404241 Prior period expenses were treated as allowable where the related liabilities crystallised during the year and the assessee consistently followed the statutory electricity-board accounting framework. The Tribunal noted that prior period income and expenses were separately reflected under that method, and the accounts had been accepted by internal auditors, statutory auditors and the CAG without adverse comment. It also found that the Assessing Officer's adjustment caused double addition for items already disallowed by the assessee in its return. On that basis, and applying the principle that expenditure is deductible when liability crystallises with consistent accounting treatment, the disallowance was held unsustainable except for items voluntarily disallowed. Case-Laws Income Tax Wed, 17 Feb 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=404241