Prior period item not deductible in section 115JB Book profit computation

International Bakery Products Ltd. Vs ACIT (ITAT Chennai) Prior period item whether expenses or income is an item of expense deductible or item of income, always comes below the  line in the profit & loss account. That means, for all practical purposes, the net profit as per books of account for the relevant period is net profit computed without making any adjustment by deducting prior period items or other appropriations made in the current financial year. If you go by this analogy then, provision for gratuity relating to earlier years claimed by the assessee under the head ‘prior peri...