Prior period expenditure

Hi Gokul.....

In case of CIT vs. Vishnu Industrial Gases (Delhi High Court)Where the department had not disputed that the expenditure was deductible in principle but was only disputing the year in which the deduction could be allowed HELD, castigating the department, that as the tax rates were the same in both years, the department should not fritter away its energies in raising questions as to the year of deductibility/taxability.

So it is allowed.

source - https://caknowledgequest.blogspot.com/search/label/Income%20Tax

hi kalyan..so does that mean that the prior period expenditure is allowable as expenditure in the current year?..i mean if the tax rates are same in both the years...what if the tax rates are not the same in  both years( year of prior expenditure n year in which deduction is claimed,which is most often  the case)