2017 (1) TMI 1808

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....7,186/-. The assessee is following mercantile system of accounting, the expenditure relating to prior period is not allowable in the current year. The Assessing Officer, therefore, disallowed the same and made addition. 3. The assessee filed written submission before ld. CIT(Appeals) and filed details of the Prior Period Expenses which are telephone, entertainment, repair and maintenance of computer, office maintenance, FBT and legal expenses totaling to Rs. 87,263/-. The Prior Period Income was shown on account of excess interest as income on FDR amounting to Rs. 6,49,923/-. Thus, total addition was of Rs. 7,37,186/-. The assessee submitted that out of Prior Period Expenses of Rs. 87,263/-, FBT expenses of Rs. 48,182/- are not allowable e....

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.... earlier year was claimed as expenditure in the current year. The ld. CIT(Appeals), therefore, noted that in case any income has been shown in excess in earlier year, the only remedy for the same is by revising the return for that year. Under no provision of Income Tax Act, can such excess income be clamed as expenditure in the subsequent year. The addition was confirmed and appeal of the assessee was dismissed. 5. We have heard ld. Representatives of both the parties and perused the findings of authorities below. The ld. counsel for the assessee did not argue with regard to Prior Period Expenses totaling to Rs. 87,263/-. In the absence of any argument and any challenge to the findings of authorities below, no interference is called for on....