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A sum of Rs. 10,51,176 were disallowed in assessment out of total marketing expenses of Rs. 2,23,24,218 in (2022] 29 ITR (Trib)-OL 782 (ITAT[Mum]) on the sole ground that they are prior period expenses. As the assessee managed to establish by evidence that bulk of the invoices in relation to such poor period amounts were received by the assessee during the relevant financial year and that the payments were also made during the same period it thus managed to prove that the said expenses have been crystallized during the year under consideration no matter that bills were dated prior to the relevant previous year in respect of services rendered in the prior period. 


Thus there is no difficulty in pressing for old year bills if the taxpayer could prove their receipt only subsequently after the close of the period to which why relate to provided he maintains and produce adequate record of their receipt to the tax auditor and/or the tax officer. 

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