Dismissing the appeal of the revenue the Court held that the only requirement under section 37 of the Income-tax Act, 1961 is that the expenses (not capital or personal) should be incurred for the purposes of the business or profession. There is no need to demonstrate that a certain expense relates to a particular income in order to claim such expense. Once prior period income is held to be taxable, prior period expenditure also should be allowed to be set off and the assessee is not obliged in law to indicate any direct or indirect nexus between the prior period income and prior period expenditure. (AY. 2006-07)