Case Law Analysis
|Income Tax Appellate Tribunal
Section 37 Mercantile Accounting | Prior Period Expenses Deductible in Crystallisation Year Upon Evidence: ITAT Kolkata
ITAT Kolkata rules that prior period expenses crystallising in the current assessment year are deductible under the mercantile system if evidence of crystallisation is furnished. The ruling clarifies that disallowance is unwarranted where the liability becomes certain during the year, impacting tax assessments for businesses with deferred liabilities.