ITAT allows interest expenses claimed based on merchandise system of accounting

ACIT Vs Gurgaon Gramin Bank (ITAT Delhi) It is emerges from the material on record that, the assessee was maintaining books of accounts which being duly audited by expert, i.e. Chartered Accountant. The report of the chartered accountant has been furnished before the A.O. At the time of assessment proceedings, the Assessing Officer has disallowed the expenditure only on the ground that, it has been claimed as prior period expenditure although the assessee was following the merchandise system of the accounting. On the contrary, the A.O has not of the opinion that the expenditure itself is bogus...