02 January 2010
MY CLIENT HAD NOT DEDUCTED THE TAX FOR THE INTEREST PAYMENT TO NBFC COMPANY FOR THE FINANCIAL YEAR 2006-2007. WHILE DURING THE SCRUTINY ASSESSING OFFICER HAD DISALLOWED THE EXPENSES AND REDUCED THE LOSS CLAIM . WHETHER HE CAN DEDUCT THE TAX NOW? THAT IS DURING THE CURRENT FINANCIAL 2009-2010. WHETHER HE CAN CLAIM THE LOSS FOR THE CURRENT FINANCIAL YEAR
02 January 2010
Yes, according to me tax can be deducted now and on deposition in 2009-10 he can claim the interest expenses which was disallowed on account of non deduction / non deposition of tax in F.Y. 2006-2007. However if the tax is deposited in F.Y. 2010-11 then the expenses will be allowed in FY 2010-11.
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