Prior period interest expense allowed since there is no loss to revenue

Prasandi Infotech Park P. Ltd. Vs ACIT (ITAT Delhi) ITAT Delhi held that interest expense relating to prior period expenditure is allowable since from the financial positions and profitability declared in the financial statement, it shows that it has no tax effect. Thus, appeal allowed. Facts- The case of the assessee was selected for scrutiny assessment. Post completion of assessment, AO disallowed prior period expense to the tune of Rs. 33,65,13,449/-. CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed. Conclusion- Held that assessee has declared loss of Rs.27.82 crore...