2014 (11) TMI 1268

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....ORDER PER SUNIL KUMAR YADAV: These appeals are preferred by the Revenue against the respective order of the ld. CIT(A) on common grounds. 2. Since these appeals were heard together, these are being disposed of through this consolidated order for the sake of convenience. We, however, prefer to adjudicate them one after the other. I.T.A. NO.190/LKW/2014: 3. Through this appeal, the Revenue ha....

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....me for the current year and the same was disallowed by the Assessing Officer and added to the total income of the assessee. 5. Before the ld. CIT(A), the ld. counsel for the assessee has contended that as per tax audit report, prior period expenditures debited is Rs.3,62,98,288.98 and the amount of prior period income credited to the profit and loss account is Rs.1,30,97,092.20 and the net amount....

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....y therein, as the assessee has not included the prior period expenses in the computation of income. Therefore, there is no question of disallowance. He, however, referred the matter to the A.O. for re-computation of loss after verification. Therefore, we find no infirmity in the order of the ld. CIT(A) and we accordingly confirm the same. I.T.A. NO.191/LKW/2014: 7. In this case, the facts are a....

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.... year to which they pertain. Therefore, netting of prior period expenses against prior period income is allowable. 8. Aggrieved, the Revenue has preferred an appeal before the Tribunal with the submission that netting between prior period expenses and prior period income may be permissible, but the net prior period expenses cannot be allowed against current income of the impugned financial year. ....