2017 (5) TMI 1480

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.... JUDGMENT 1. By way of this appeal, the appellant has assailed the judgment and order of the Tribunal whereby the Tribunal has dismissed the appeal of the department. 2. This Court while admitting the matter framed the following question of law:- "1. Whether on the facts and circumstances of the case the Tribunal was justified in confirming the deletion of prior period expenses of Rs. 1,5....

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....2) of the IT Act was issued by the undersigned on dated 30.11.2005 which was sent through speed post to the assessee. In response there to Shri Magendra Singh Rathore, Accounts Officer of the Company attended the assessment proceedings and filed details/documents/ submissions and produced books of accounts as called for and case was discussed with him." 4. The AO while considering the case has ....

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....tter is subject to reconciliation. In fact as per the terms & conditions of the transfer scheme, in case of any dispute, the State Government's decisions shall be final. However, before any decision or even referring the matter to the State Government, the company has debited it as Bad Debts which are not supposed to be allowed as a deduction. The assessee also submitted that on this issue appeal ....

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....n.com 146 (Delhi) wherein in para 13 & 14 it has been held as under:- "13. The prior period expenses are eligible for deduction during the current year provided the liability was determined and crystallized during the relevant year. 14. The reason to believe recorded by the Assessing Officer "that the assessee has debited a sum of Rs. 1,20,765 in the P & L account on account of prior period ....