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I also found that the concept of prepaid expenses is correct. Just because an amount is paid in advance, it cannot be said that the expenditure is incurred in earlier year. The payment is made in advance. Since the expenditure pertains to the present year, the whole expenditure should be allowed during the current year only.

with regards,
G.Sivaiah

Since it is not possible to file a revised return at this juncture, it may be presumed that it can be taken up under the provisions of Sec. 154. Please refer to the decision of Apex court reported in 251 ITR 200 wherein it is held that retrospective amendments will have its own effect though the return filed is correct as per the existing law as on the date of filing. Since retrospective amendment is brought into statute, the assessee, in any way should not be punished. It should be allowed either under 154 or under 264 or some other provision which apparently not found. In my opinion Courts will definitely allow reliefs in this regard.

Hope you will accept my argument.