Expense crystallized during the year allowable as Prior Period Expense

Dakshin Haryana Bijli Vitran Nigam Ltd. Vs ACIT (ITAT Delhi) The issue under consideration is whether AO is correct in disallowing the prior period expense debited to Profit and Loss Account? In the present case, the assessee credited a net balance of Rs.31,36,65,890/- in the profit and loss account after setting off a prior period expense of Rs.21,210/- from prior period income of Rs.31,36,87,100/- which was due to the arrears of salary of the employees. It is submitted on behalf of assessee that the same accounting treatment for prior period expenses has been given by the assessee quite for ...