The Tribunal held that the demand had arisen and the liability crystallised during the year, the statutory auditors had disclosed the expenditure under the extraordinary items in the financial statements of the company in accordance with the provisions of Accounting Standard 5 on net profit or loss for the year prior period items and changes in the accounting policies issued by the Institute of Chartered Accountants of India considering the largeness of the amount involved. Thus there was no case for the Department that the expenditure was in the nature of prior period expenses. Interest liability was only compensatory payment and the liability was accrued during the assessment year 2007-08. Irrespective of the long delay involved and also the period of default the interest was computed at a stipulated percentage on the amount of pole rent charges remitted with delay. Therefore, the nature of the payment continued to remain was of compensatory nature  ( AY.2007-08, 2010-11)