Whether prior period expenses are allowable under IT act

CA Rachit Gupta (Chartered Accountant) (1315 Points)

27 August 2010  

Dear Sir/Mam

I have some confusion regarding treatment of prior period expenses.

If some expenses of repair and maint. of plant & machinery (assumed not applicable for TDS) are related to the P.Y. 2008-09 and by mistake not booked in the same year but booked in the F.Y.2009-10.

Then whether these expenses are allowed as deduction as per Income Tax Act. and if not the under which section the same is disallowed. please refer relevant case law regarding the same, if any.

Thanks