Arbitration fees of previous years

Neha Bhattar (none) (170 Points)

22 August 2014  

IN 2005-06, A FIRM HAD WIP OF RS 20L (GOVT DEPPT) AND BALANCE FROM REVENUE ATHORITIES OF RS 10L. GOVT DEPPT WAS NOT ADMITTING THE WORK DONE FOR 20L AND THUS THE CLIENT WENT FOR ARBITRATION. EVERY YEAR COURT FEES AND ARBITRATION EXPENSES, ETC WERE INCURRED.WHEREAS NO RETURN WAS BEING FILED. IN PY 2013-14, CASE WAS DECIDED AND WORK DONE WAS PERMITTED BY THE COURT. IN 2013-14, AMOUNT RECEIVED WAS - AGAINST WIP RS 6L AND AS INTEREST RS 15L. IN 2014-15,AMOUNT RECEIVED WAS - AGAINST WIP RS 20L AND AS INTEREST RS 10L.

CLIENT WANTS TO FILE HIS RETURN NOW. WHAT CAN BE DONE?? CAN THE ARBITRATION FEES INCURRED IN THE YEARS 2006-2013, BE CLAIMED IN PY 2013-14?. PLEASE GUIDE ME. I AM VERY CONFUSED. URGENT REPLIES WILL BE APPRECIATED.