Reversal of profits declared in earlier years on account of ...

Case Laws Income Tax

November 15, 2019

Reversal of profits declared in earlier years on account of estimated loss expected - valuation of work in progress (WIP) - The matching principle requires recording expenses in the same accounting period in which the revenues were earned as a result of the expenses. Expense recognition, similar to revenue recognition, has a balance sheet effect. - The action of the assessee upsets the applecart of mercantile system of accounting, the matching principles.

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Reversal of profits declared in earlier years on account of ...

Case Laws Income Tax

November 15, 2019

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