Addition of disallowed prior period expenses not permitted in book profit computation

Gujarat Chemical Port Terminal Co. Ltd Vs DCIT (ITAT Ahmedabad) Revenue’s appeal involve a common issue relating to the deletion by CIT(A) of addition made by Assessing Officer on account of prior period expenses while computing book profit under Section 115JB of the Act. This issue is squarely covered in favour of the assessee inter alia by the decision of Hon’ble Karnataka High Court in the case of CIT v . GMR Industries Ltd., [2020] 425 ITR 504, wherein it was held that prior period expenses charged to profit and loss account cannot be deducted from the profit of the year for the purpos...