The assessee debited a sum of Rs. 2.83 lakhs under the head “repair and maintenance expenses”. The date of invoice was February 3, 2009 and the payment had been made in the month of April 3, 2009. The Assessing Officer disallowed the expenditure as prior period expenditure holding that under the mercantile system of accounting the income and expenditure were required to be accounted for and were allowable in the relevant year to which they relate. The Commissioner (Appeals deleted the addition. On appeal ITAT held, that the invoice was received in the month of April 2009 and the payment was made in the month of April 2009. Thus, the amount crystallized during the year and even services were rendered during the year and therefore, the amount could not be treated as prior period item. Hence, the addition of Rs. 2.83 lakhs was to be deleted. (AY.2010-11)