https://www.taxtmi.com/caselaws?id=768375 The HC held that prior period expenses, though debited after net profit in the P&L account, must be included in computing book profits under s.115JA for MAT purposes. The Tribunal erred in excluding these expenses, relying on a nonexistent profit and loss appropriation account. The Court emphasized that such prior period items, as defined by AS 5, arise due to errors or omissions in prior years but crystallize in the current year and thus affect net profit determination. The Department did not dispute the allowability or quantification of these expenses in regular assessments. Accordingly, the revision under s.263 was disallowed, and the substantial question of law was answered in favor of the Assessee. en-us Fri, 22 Nov 2024 00:00:00 +0530 Mon, 04 Aug 2025 15:20:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=768375 The HC held that prior period expenses, though debited after net profit in the P&L account, must be included in computing book profits under s.115JA for MAT purposes. The Tribunal erred in excluding these expenses, relying on a nonexistent profit and loss appropriation account. The Court emphasized that such prior period items, as defined by AS 5, arise due to errors or omissions in prior years but crystallize in the current year and thus affect net profit determination. The Department did not dispute the allowability or quantification of these expenses in regular assessments. Accordingly, the revision under s.263 was disallowed, and the substantial question of law was answered in favor of the Assessee. Case-Laws Income Tax Fri, 22 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=768375