Matching Revenue Not a Precondition for Business Expense Claim: ITAT Mumbai

Advertisement DCIT Vs Shrem Infraventures Pvt. Ltd. (ITAT Mumbai) AO found that the assessee has booked management fees of Rs. 24,00,000/- only as revenue from operations & accordingly show caused the assessee to explain why the expenses should not be disallowed u/s 37(1)   as revenue expenditure & why it should not be capitalised for amortisation in subsequent assessment years. AO was of the opinion that the assessee has not followed the matching principles of accounting which requires that the expenses incurred during the period be recorded in the same period in which the relate...