Prior period items

hi dhanesh

there is no specific section dealing with either as allowable or disallowable of prior period expense.howver one of the condition for allowance of expenditure under sec 37 is that - exp should be incurred during the previous year .you can refer urban improvement Co (p) ltd .ITA No 3246/Mum/2006 for the allowability under sec 37.

Thanks Rahul