It may be noted that there is a difference between the expenditure of any earlier year debited to the profit and loss account and the expenditure relating to an earlier year, which has crystallised during the relevant year. An expense, though related to previous periods, which has been determined in the current period, would not be considered a prior period item.
In such cases, though the expenditure may relate to the earlier year, it can be considered as arising during the year on the basis that the liability materialised or crystallised during the year, and such cases will not be reported under this clause.
In case of any conflict in the opinion of the statutory auditor and tax auditor, the opinion of the tax auditor shall prevail, and the information thereof shall be reported in Form 3CD.