Alowablity of Prior Period expenses : An assessee debited certain expenses as prior period expenses to its Profit and Loss Account for f.y. 2008-09, since the bills were received during f.y. 2008-09 and provision was not made in f.y. 2007-08. This fact can be proved by the stamp on bills. There are certain case laws CIT V Modipon, 334 ITR 102 Delhi High Court (2012), CIT V Exxon Mobile Lubricants 328 ITR 17 Delhi High Court (2010). According to them expense should be debited to Profit and Loss Account in the period when it is crystallized. Assessee’s case is before CIT (A), who has asked to provide evidence of crystallization.
Are there any other factors or could there be any other evidence of crytallisation?
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