ITAT Delhi Judgments — June 2023

The Tribunal held that the prior period expenses and income were allowable as they crystallized during the year of booking, and the genuineness was not disputed. The Tribunal also noted the assessee's continuous losses, making the timing of expense recognition less critical for tax purposes.

The Tribunal held that the penalty notice was defective because it failed to specify the exact offense committed by the assessee. Following the Bombay High Court's Full Bench decision, the Tribunal found that such a notice vitiates the entire penalty proceedings.

The Tribunal held that the prior period expenses and income were allowable as they crystallized during the year of booking, and the genuineness was not disputed. The Tribunal also noted the assessee's continuous losses, making the timing of expense recognition less critical for tax purposes.