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TMI Blog2014 (11) TMI 1268X X X X Extracts X X X X X X X X Extracts X X X X ..... He, however, referred the matter to the A.O. for re-computation of loss after verification. Therefore, we find no infirmity in the order of the ld. CIT(A) and we accordingly confirm the same. Netting of prior period expenses and prior period income - Disallowance be restricted to the net prior period expenses debited to the profit and loss account - HELD THAT:- Revenue has preferred an appeal before the Tribunal with the submission that netting between prior period expenses and prior period income may be permissible, but the net prior period expenses cannot be allowed against current income of the impugned financial year. Therefore, disallowance be restricted to the net prior period expenses debited to the profit and loss account. To ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fter the other. I.T.A. NO.190/LKW/2014: 3. Through this appeal, the Revenue has assailed the order of the ld. CIT(A) on a solitary ground that the ld. CIT(A) has erred in law and on facts in directing the Assessing Officer to verify the issue in respect of allowability of prior period expenses of Rs.3,62,98,289/- and recompute the loss for assessment year 2006-07, as these were not allowable. 4. Having given a thoughtful consideration to the rival submissions and from a careful perusal of the orders of the authorities below, we find that from the tax audit report the Assessing Officer observed that in column No. 22(b), the assessee has declared prior period expenditure amounting to Rs.3,62,98,289/- which has been debited again ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wever, referred the matter to the A.O. for re-computation of loss after verification. Therefore, we find no infirmity in the order of the ld. CIT(A) and we accordingly confirm the same. I.T.A. NO.191/LKW/2014: 7. In this case, the facts are almost similar and before the ld. CIT(A), it was pointed out that in the tax audit report in column No. 22(b) the particulars of the prior period expenses have been reported and in the same column a sum of Rs.20,21,868/- has been credited in the profit and loss account on account of income relating to prior period. Accordingly it was contended before the ld. CIT(A) that netting of prior period expenses and prior period income is possible and only disallowance of net prior period expenses can b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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