Kindly Suggest whether Prior Period Expenses are allowed in Income Tax or Not???
I have gone through various Judgments on the said matter and found it complicated ... and need help of experts...
Further i have one more doubt whether section 28-40 of Income Tax Act is applicable to Charitable Organisation or not???
Example :- Suppose a Charitable Organisation makes payment to its consultant or employees without deducting tax at source as required under section 194 & 192 of Income Tax Act
Whether such expenses can be disallowed by Assessing Officer???
06 June 2013
Prior period exps (major amount) is not allowed to deductible under income tax act. for this you have to revise the previous income tax,if it is permitted by act.
Section 28-40 is not applicable for a charitable organization.
if Section 28-40 is not applicable for a charitable organisation it means prior period expenses will be allowed as the same is disallowed under section 37 only.
it means a section 25 company can claim the deduction of prior period expenses???
CAclubindia
