9911796707
TMI Blog2021 (8) TMI 509X X X X Extracts X X X X X X X X Extracts X X X X ..... RB.R. BASKARAN, ACCOUNTANT MEMBER: The assessee has filed this appeal challenging the order dated 31.8.2017 passed by Ld. CIT(A)-5, Bengaluru and it relates to the assessment year 2014-15. The assessee is aggrieved by the decision of Ld. CIT(A) in confirming the disallowance relating to prior period expenses made by the A.O. 2. The facts relating to the issue are stated in brief. The assessee is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 16,86,334/- Rs. 2,24,84,452/- Subsequently, the A.O. noticed that the income of Rs. 16,86,334/- declared by the assessee is net of prior period income less prior period expenses, meaning thereby, the prior period income has already been offered to tax. Hence making addition of prior period income again has resulted in double assessment. Accordingly passed a rectification o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal is treated as dismissed." Aggrieved by the order passed by Ld. CIT(A), the assessee has filed this appeal before us. 5. The only that arises for our consideration is whether the tax authorities are justified in disallowing the prior period expenses alone, while assessing the prior period income? 6. The Ld. A.R. submitted that the assessee has deducted the prior period expenses from prio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the assessee has already offered net income of Rs. 16,86,334/- and hence, no separate disallowance is called for. 7. On the contrary, the Ld. D.R. supported the order passed by Ld. CIT(A). 8. Having heard the rival contentions, we are of the view that there is merit in the contentions of the assessee. It is a fact that the assessee has offered no prior period income of Rs. 16,86,334/-, which h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... endered by Hon'ble Gujarat High Court in the above said case. We notice that the assessee has offered Rs. 16,86,334/- as per the principle laid down by the Hon'ble Gujarat High Court in the above said case. 9. Accordingly, following the decision rendered by Hon'ble Gujarat High Court in the case of Dishman Pharmaceuticals & Chemicals Ltd. (supra), we direct the AO to allow the prior period expend ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
