Prior-Period Expenses Allowed When Liability Crystallises in Current Year

DCIT Vs Crystal Crop Protection Limited (ITAT Delhi) Crystallisation Is Key, Not the Label: ITAT Allows Prior-Period Discount, Upholds 80-IA Deduction & Treats Subsidies as Capital Receipts The Delhi Bench of the Income Tax Appellate Tribunal dismissed the Revenue’s appeals for AYs 2013-14 and 2018-19 and also dismissed the assessee’s cross-objection as academic, upholding the CIT(A)’s relief on multiple issues. For AY 2013-14, the Tribunal held that discounts to customers, though shown as prior-period expenses, were allowable because the liability crystallised during the year. The d...